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  3. a(n) 10.0?%, ?25-year bond has a par value of? $1,

A(n) 10.0?%, ?25-year bond has a par value of? $1,000 and a call price of $1,075....

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Finance

A(n) 10.0?%, ?25-year bond has a par value of? $1,000 and a callprice of $1,075. ?(The bond's first call date is in 5? years.)Coupon payments are made semiannually? (so use semiannualcompounding where?appropriate).

a. Find the current? yield, YTM, and YTC on this? issue, giventhat it is currently being priced in the market at $1,200. Which ofthese 3 yields is the? highest? Which is the? lowest? Which yieldwould you use to value this? bond? Explain.

b. Repeat the 3 calculations? above, given that the bond isbeing priced at $850. Now which yield is the? highest? Which isthe? lowest? Which yield would you use to value this? bond?Explain.

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A(n) 10.0?%, ?25-year bond has a par value of? $1,000 and a callprice of $1,075. ?(The bond's first call date is in 5? years.)Coupon payments are made semiannually? (so use semiannualcompounding where?appropriate).a. Find the current? yield, YTM, and YTC on this? issue, giventhat it is currently being priced in the market at $1,200. Which ofthese 3 yields is the? highest? Which is the? lowest? Which yieldwould you use to value this? bond? Explain.b. Repeat the 3 calculations? above, given that the bond isbeing priced at $850. Now which yield is the? highest? Which isthe? lowest? Which yield would you use to value this? bond?Explain.

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