Question: Using annual compounding, find the yield to maturity for each of the following bonds. a. A 9.5%, 20-year bond priced at $957.43 b. A 16%,
a. A 9.5%, 20-year bond priced at $957.43
b. A 16%, 15-year bond priced at $1,684.76
c. A 5.5%, 18-year bond priced at $510.65
Now assume that each of the above bonds is callable as follows: Bond a is callable in 7 years at a call price of $1,095; bond b is callable in 5 years at $1,250; and bond c is callable in 3 years at $1,050. Use annual compounding to find the yield to call for each bond.
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