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-A 15-year maturity, 8% coupon bond is callable in 5 years at a call price of...

-A 15-year maturity, 8% coupon bond is callable in 5 years at a call price of $1,050. The bond currently sells at yield to maturity of 7%

a-    What is the yield to call ?

b-    What is the yield to call if the call price is only $1000

c-     What is the yield to call if the call price is $1050, but the bond can be called in 2 years instead of 5 ?

Solutions

Expert Solution

a)

b)

c)

jeff jeffy answered 1 year ago
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