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You are considering investing in Belvedere Company callable bonds with semi-annual coupon payments. The detals of the bond issue are in the table below. What
You are considering investing in Belvedere Company callable bonds with semi-annual coupon payments. The detals of the bond issue are in the table below. What is the yield to maturity on these bonds? What is the yield to call on these bonds? | ||||||
Par Value | $1,000.00 | |||||
Annual Coupon Rate | 8.00% | |||||
Current Price | $1,205.00 | |||||
Call Price | $1,080.00 | |||||
Years to Maturity | 11 | |||||
Years to Call | 3 | |||||
Coupons per year | 2 | |||||
Use the scratchpad to show your work in Excel. | ||||||
Type your numercial answer into the yellow cells below. | ||||||
Answers should be to two decimal places, e.g. 1.23% or $123.45. | ||||||
Yield to Maturity | ||||||
Yield to Call |
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