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  3. a(n) 11.0?%, ?25-year bond has a par value of? $1,

A(n) 11.0?%, ?25-year bond has a par value of? $1,000 and a call price of ?$1,150....

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Finance

A(n) 11.0?%, ?25-year bond has a par value of? $1,000 and a callprice of ?$1,150. ?(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, given that it is currently being priced inthe market at $ 1,275. Which of these 3 yields is the? highest?Which is the? lowest? Which yield would you use to value this?bond? Explain. b. Repeat the 3 calculations? above, given that thebond is being priced at ?$925. Now which yield is the? highest?Which is the? lowest? Which yield would you use to value this?bond? Explain.

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