Question: Problem 1 0 - 3 2 ( Algo ) A 2 0 - year maturity, 7 . 9 % coupon bond paying coupons semiannually is
Problem Algo
A year maturity, coupon bond paying coupons semiannually is callable in seven years at a call price of $ The bond currently sells at a yield to maturity of per halfyear
Required:
a What is the yield to call? Do not round intermediate calculations. Round your answer to decimal places.
b What is the yield to call if the call price is $ but the bond can be called in four years instead of seven years? Do not round intermediate calculations. Round your answer to decimal places.
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