Question: Please Help. I will upvote. Mr. Clark is considering another bond, Bond D. It has a 7% semiannual coupon and a $1,000 face value (i.e.,
Please Help. I will upvote.
Mr. Clark is considering another bond, Bond D. It has a 7% semiannual coupon and a $1,000 face value (i.e., it payd a $35 coupon every 6 months). Bond D is scheduled to mature in 8 years and has a price of $1,140. It is also callable in 6 years at a call price of $1,080.
1.What is the bonds nominal yield to maturity?
2.What is the bonds nominal yield to call?
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