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The bond has a call feature that allows the issuer to call the bond after 6 years for a price of $1200. Calculate the yield

  1. The bond has a call feature that allows the issuer to call the bond after 6 years for a price of $1200. Calculate the yield to call.
  2. After one year, the market rate of return rises to 6%. What is the price of the bond now? Calculate the YTM for the bond at that time
  3. Explain how inflation expectations shape the term structure of interest rates.

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