Ramstucky corp bonds just paid their annual coupon of 4, Ask an Expert

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Ramstucky Corp bonds just paid their annual coupon of 4%. They mature in 6 years. The required rate of return on the bonds is 5%. The call price of the bonds is 102, but they are not callable until after the second coupon payment. What is the price of the bonds as a percentage of par? What is the current yield? What is the yield to first call? If, immediately after the second coupon payment, the yield to maturity is 4.5% and you sell the bond at that time, what rate of return will you have received over the two years?

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Financial Management, Finance

Category:- Financial Management
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