A bond sells for 1500 and it pays 100 per annum till its, Ask an Expert

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A bond sells for $1500 and it pays $100 per annum till its maturity 18 years from now. The firm, however, may call it back after 3 years at $1100. Derive its ytm and its call rate. Compare the ytm and the call rate. Are they reasonable? Why, or why not? Which of the two does an investor make? SHOW WORK AND FORMULA STEP BY STEP

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Financial Management, Finance

Category:- Financial Management
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