Prestige Worldwide issued bonds currently priced at $1250. The bonds have an annual coupon payment of...

Prestige Worldwide issued bonds currently priced at $1250. The bonds have an annual coupon payment of 10%, a face value of $1000 and 10 years to maturity. The bonds are callable in 6 years at a call price of $1100. a. What is the yield to maturity? b. If the bonds are called in 6 years, what is the yield to call? c. Which yield would investors expect to earn on these bonds and why?

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