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U Question 1 1 pts Dyl Inc.'s bonds currently sell for $970 and have a par value of $1,000. They pay a $65 annual coupon
U Question 1 1 pts Dyl Inc.'s bonds currently sell for $970 and have a par value of $1,000. They pay a $65 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to maturity (YTM)? 6.96% 5.87% 6.83% 7.92% 5.26% Question 2 1 pts Sadik Inc.'s bonds currently sell for $1,250 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)? 5.84% 5.03% 5.97% 6.28% 7.79% Question 3 1 pts McCue Inc.'s bonds currently sell for $1,250. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC? (Subtract the YTC from the YTM; it is possible to get a negative answer.) 2.62% 2.98% 02.04% 2.33% 2.77%
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