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You purchase an 8% coupon, 25-year, $1,000 par, semiannual payment bond priced at $980 when it has 15 years remaining until maturity. 1) what is
You purchase an 8% coupon, 25-year, $1,000 par, semiannual payment bond priced at $980 when it has 15 years remaining until maturity.
1) what is its yield to maturity?
2) what is the yield to call if the bond is called 5 years from today with a 5% premium?
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