Question: It is now January 1 , 2 0 2 5 and you are considering the purchase of an outstanding bond that was issues on January

It is now January 1,2025 and you are considering the purchase of an outstanding bond that was issues on January 1,2023. It has a 9.5% annual coupon and has a 30 year original maturity. (It matures on January 1,2053). There is a 5 year cal provision (until December 31,2027) on which it can be called at 109(109% of par). interest rates have declined since it was issued and is now selling at 116.575
A What is the yield to maturity and yield to call?
B. If you bought this bond, which return would you actually earm? Explain your reasoning.
C. It you bought this bond at a discount, which return would you actually earm? Explain your reasoning.
It is now January 1 , 2 0 2 5 and you are

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