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Tundra Textiles (TT) has $1,000 face value, 5.2% coupon rate (semi-annual coupon payments) with an original maturity of 20 years. The bonds were issued three

Tundra Textiles (TT) has $1,000 face value, 5.2% coupon rate (semi-annual coupon payments) with an original maturity of 20 years. The bonds were issued three years ago and are callable 10 years from the issue date and thereafter (on coupon dates) for par.
The bonds currently sell for $1,000. What is the yield to maturity of the bond, what is the yield to call and what is the yield to worst? Are the bonds likely to be called?

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To calculate the yield to maturity YTM of Tundra Textiles bond we need to use the formula for calculating YTM which is YTM C P C P 1 1 YTMn 1 1 YTMn w... blur-text-image

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