Question: Moving to another question will save this response. Question 23 of 35 estion 23 12 points Save Answer Amazon's bonds currently sell for $1,250. They
Moving to another question will save this response. Question 23 of 35 estion 23 12 points Save Answer Amazon's bonds currently sell for $1,250. They pay a $90 annual coupon, have a 20-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,100. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels into the future. What is the difference between this bond's YTM and its YTC? (Subtract the YTC from the YTM; it is possible to get a negative answer.) Arial 3 (12pt)
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