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Homework answers / question archive / 52 A bond that matures in 10 years is callable in three years at a call price of $1,025
52
A bond that matures in 10 years is callable in three years at a call price of $1,025. The bond has a semi- annual coupon rate of 8 percent. If the YTM is 7.3 percent and the YTC is 6.92 percent, what is the bond's current price? Is this bond likely to be called?
53. (LO 6.7) A 12-year, 7.5-percent bond is callable in four years at a call price of $1,045. If the bond pays semi-annual coupons and is selling for $1,038, what is the YTM and YTC of the bond? Is this bond likely to be called?
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