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Thatcher Corporation's bonds will mature in 13 years. The bonds have a face value of $1,000...

Thatcher Corporation's bonds will mature in 13 years. The bonds have a face value of $1,000 and a 9% coupon rate, paid semiannually. The price of the bonds is $1,150. The bonds are callable in 5 years at a call price of $1,050. What is their yield to maturity? What is their yield to call? Do not round intermediate calculations. Round your answers to two decimal places.

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Expert Solution

Hence, Bond yield to maturity is 7.20% (3.60%*2)

Hence, Bond yield to call is 6.32% (3.16%*2)

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jeff jeffy answered 2 days ago
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