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Yeipl to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the expected rate

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Yeipl to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the expected rate of retum under certain assumptions. Which of the following is one of those assumptions? The bond has an early redemption feature. The bond will not be called. Consider the case of RTE Inc.: RTE Inc, has 9% annual coupon bonds that are caliable and have 18 years left until maturity, The bonds have a par value of $1,000, and their current market price is $1,220,35. Howeyer, RTE Inc, may call the bonds in elght years at a call price of $1,060. What are the YTM and the yiald to call (YTC) on RTE Incis bonds? If interest rates are expected to remain constant, what is the best estimate of the remaining life left for RTE Inc.'s bonds? 5 years 13 years 18 years B years If RTE Ine. issued new bonds today, what coupon rate must the bonds have to be issued at par

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