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Using annual compounding, find the yield-to-maturity for each of the following bonds. a. A(n) 10.5%, 23-year bond priced at $884.22. b. A(n) 15%, 21-year bond
Using annual compounding, find the yield-to-maturity for each of the following bonds. a. A(n) 10.5%, 23-year bond priced at $884.22. b. A(n) 15%, 21-year bond priced at $1,323.00. c. A(n) 7.5%, 14-year bond priced at $958.78. Now assume that each of the above three bonds is callable as follows: Bond a is callable in 5 years at a call price of $1,185; bond b is callable in 4 years at $1,360; and bond c is callable in 7 years at $1,160. Use annual compounding to find the yield-to-call for each bond. The yield-to-maturity for bond a is l%. (Round to two decimal places.) The yield-to-maturity for bond b is %. (Round to two decimal places.) The yield-to-maturity for bond c is %. (Round to two decimal places.) The yield-to-call for bond a is %. (Round to two decimal places.) The yield-to-call for bond bis %. (Round to two decimal places.) The yield-to-call for bond c is %. (Round to two decimal places.)
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