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The Whitesell Athletic Corporation's bonds have a face value of $1,000 and a 10% coupon paid semiannually. The bonds mature in 20 years but are
The Whitesell Athletic Corporation's bonds have a face value of $1,000 and a 10% coupon paid semiannually. The bonds mature in 20 years but are callable in 5 years at 120% of par. The bonds currently sell for 95% of par. (A) What is the current yield for these bonds? (B) What is the yield to call on these bonds? (C) What is the yield to maturity on these bonds? (D) What will be the price of these bonds four years from now if market rates are 12%
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