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Yield 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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Yield 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 return under certain assumptions. Which of the following is one of these assumptions? The bond has an early redemption feature. The bond will not be called. Consider the case of Bidget Corp. Bidget Corp. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,130.35. However, Bidget Corp. may call the bonds in eight years at a call price of $1,060. What are the YTM and yield to call (YTC) on Bidget Corp.'s bonds? If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Bidget Corp.'s bonds? 5 years 13 years 10 years 8 years If Bidget Corp. issued new bonds today, what coupon rate must the bonds have to be issued at par

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