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Three years ago you bought a $1000 par value, 10-year bond that pays interest annually. The bond has a coupon rate of 10%. However, this bond is callable at the end of year five at par value. The bond is currently trading at $1045. Calculate the bond's yield (a) to maturity, and (b) if it is called at the end of year five.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92884841

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