A 20-year maturity bond with a par value of $1,000 makes semiannual payments at a coupon rate
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Question:
A 20-year maturity bond with a par value of $1,000 makes semiannual payments at a coupon rate of 8%. Investors require an 8.4% rate of return for a similar risk bond. The bond is callable in 5-years at a call price of $1,100.
Find the bond current bond value for this bond?
Find the Yield to Call for the above bond assuming the bond is selling at a price computed?
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