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Start with the partial model in the file Ch05 P24 Build a Model.xlsx on the textbooks Web site. A 20-year, 8% semiannual coupon bond with
Start with the partial model in the file Ch05 P24 Build a Model.xlsx on the textbooks Web site. A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has just been issued.)
What is the bond's Periodic YTM?
What is the bond's Capital Gain/Loss Yield?
What is the bond's Annualized Nominal YTC (Yield-to-Call)?
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