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Softronics Inc have issued a 15-year callable bond. The bond has a 8% coupon rate with annual coupon payments. The bond can be called at
Softronics Inc have issued a 15-year callable bond. The bond has a 8% coupon rate with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It currently has a price of $989 and a face value of $1000. a. What is the bond's yield to call? Answer in percentage form with two decimals (i.e. 10.04%, not 0.1004). % b. What is the bond's yield to maturity? Answer in percentage form with two decimals (1.e. 10.04%, not 0.1004). % c. What is the bond's yield to call if instead the coupon payments were made semiannually and the annual coupon rate was still 8%? Answer in percentage form with two decimals (i.e. 10.04%, not 0.1004). %
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