Question: Please answer this conceptual questions, I will be grateful if you help me and in retrun i ll make nice ratings please Question 9 0

Please answer this conceptual questions, I will be grateful if you help me and in retrun i ll make nice ratings please

Question 9

0 / 1 point

In an era of particularly low interest rates, which of the following statements is correct for callable bond?

Question options:

a)

You should expect to earn YTC on par value bond.

b)

You should expect to earn YTC on discount bond.

c)

You should expect to earn YTC on premium bond.

d)

You should expect to earn YTM on premium bond.
Question 10 0 / 1 point

A corporate bond has a 10-year maturity and pays interest semiannually. The quoted coupon rate is 5%, and the bond is priced at par. The bond is callable in 3 years at 110% of par. What is the bond's yield to call?

Question options:

a)

8.98%

b)

9.17%

c)

4.00%

d)

6.72%

e)

8%

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