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Showing all calculations: A $1000 par value bond pays $70 annual interest, has 5 years to maturity, and three years to call at a price
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A $1000 par value bond pays $70 annual interest, has 5 years to maturity, and three years to call at a price of 105 The current value of this bond is $886, and the current market rate for bonds with this risk level is 10%. Calculate the below yields on this bond. INPUT AREA Interest payment Par Market rate Current value Call value @ 105 Years to maturity Years to call OUTPUT AREA Coupon Current Yield to maturity Yield to callStep by Step Solution
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