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Problem:

Atlantis Fisheries issues zero coupon bonds on the market at a price of $364 per bond. Each bond has a face value of $1,000 payable at maturity in 18 years. It is callable in 9 years at a call price of $490. Using semiannual compounding, what is the yield to call for these bonds?

Note: Explain in detail.

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  • Category:- Basic Finance
  • Reference No.:- M91147607

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