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The semi-annual bonds issued by the Coldau Corporation have a par value of $1,000. They will sell for $690 and have 10 years remaining to

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The semi-annual bonds issued by the Coldau Corporation have a par value of $1,000. They will sell for $690 and have 10 years remaining to maturity. The coupon rate is 13%. Show a timeline. Without performing any calculations, is this a discount or premium bond? Using your understanding of the three key bond relationships, will the yield to maturity be higher or lower than the coupon rate? Calculate and define the yield to maturity, using the timeline and TVM grid. Perform the arithmetic calculations for the annuity and for the lumpsum payout of the principal. Calculate and define the current yield and the capital gains yield. Challenge 6. Seldau Corporation is considering issuing the above-mentioned semi-annual bond with an option to call in the bond after 5 years. If they do so, they will pay an extra two years' worth of coupons. Before performing any calculations, explain the advantages/disadvantages of this call feature to Coldau. Also, explain the advantages/disadvantages of this call feature to a potential investor. Calculate the yield to call and compare it to the yield to maturity that was found in the previous problem. Which is higher

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