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 and you are considering the purchase of an outstanding bond that was issues on January It has a annual coupon and has a year original maturity. It matures on January There is a year cal provision until December on which it can be called at of par interest rates have declined since it was issued and is now selling at
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.
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