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Yield to Maturity and Call with Semiannual Payments

Thatcher Corporation's bonds will mature in 11 years. The bonds have a face value of $1,000 and an 9% coupon rate, paid semiannually. The price of the bonds is $1,050. The bonds are callable in 5 years at a call price of $1,050. Round your answers to two decimal places.

A) What is their yield to maturity?(%)

B) What is their yield to call?(%)

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92059312

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