Question: Please show all calculation please dont use excel if possible and try to explain each and every point thank you 3.) A bond currently sells
Please show all calculation please dont use excel if possible and try to explain each and every point thank you
3.) A bond currently sells for $1,250. It pays a $110 annual coupon and has a 20-year maturity, but it can be called in 5 years at $1,110. [Par value of bond is generally $1,000. If par value is not given in the problem, assume it is $1,000.]
(a) What are its YTM and (b) its YTC?
(c) Is it likely to be called if interest rates dont change?
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