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Last year Darlington Equipment Company issues a 10-year, 12% coupon bond at its par value of...

Last year Darlington Equipment Company issues a 10-year, 12% coupon bond at its par value of $1000. Interest is paid quarterly. Currently the bond sells for $1,200.

a. What is the bonds yield to maturity?

b. If the bond can be called in 5 years for a redemption price of $1,165, what is the bond's yield to call?

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jeff jeffy answered 2 years ago
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