Question: Hi, Please read the question below. I need help answering this problem. Bombs-Away bonds are currently selling at $1,200. Their face value is $1,000, coupon
Hi,
Please read the question below. I need help answering this problem.
Bombs-Away bonds are currently selling at $1,200. Their face value is $1,000, coupon is 11% and years left to maturity is 10. The bonds are callable in five years, at 109.
What is the yield to maturity?
What is the yield to call if they are called at first opportunity?
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