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Yield to maturity (YTM) is the rate of return expected from n bond held until its maturity date. However, the YTM equals the expected rate
Yield to maturity (YTM) is the rate of return expected from n bond held until its maturity date. However, the YTM equals the expected rate of return 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 Demed Inc Demed Inc. has 9% annual coupon bonds that are callable and have 18 years left inl matarity The bonds have a per value af $1,000, and their current market price is $1,190.35. However, Demod Inc. may call the bonds ih esttht vears at a coll price of $ 1,060 Whot are the YTM and the yield to call IYTC) on Demed Inc.'s bonds? Value STM YTC E interest rates are expected to remain constant, whiot is the best estimato ot thretbleand fe et or hed ine s bonds 18 yeers 5 yenrs 13 years 8 vears It Demed Inc, ased new lionds today, what coupon rate must thd bends hae to be issuod at par
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