Question: e. Mr. Clark is considering another bond, Bond D. It has a 9% semiannual coupon and a $1,000 face value (i.e., it pays a

e. Mr. Clark is considering another bond, Bond D. It has a

e. Mr. Clark is considering another bond, Bond D. It has a 9% semiannual coupon and a $1,000 face value (i.e., it pays a $45 coupon every 6 months). Bond D is scheduled to mature in 8 years and has a price of $1,110. It is also callable in 5 years at a call price of $1,020. 1. What is the bond's nominal yield to maturity? Round your answer to two decimal places. 7.10 % 2. What is the bond's nominal yield to call? Round your answer to two decimal places. 7.13 % 3. If Mr. Clark were to purchase this bond, would he be more likely to receive the yield to maturity or yield to call? Explain your answer. expect the bond to be called. Consequently, he would earn YTC the YTC, Mr. Clark should Because the YTM is less than

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