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Fincorp issues two bonds with 15-year maturities. Both bonds are callable at $1,080. The first...

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Fincorp issues two bonds with 15-year maturities. Both bonds are callable at $1,080. The first bond is issued at a deep discount with a coupon rate of 8% and a price of $530 to yield 17.0%. The second bond is issued at par value with a coupon rate of 18.00% Required: a. What is the yield to maturity of the par bond? (Round your answer to 2 decimal places.) Yield to maturity % b. If you expect rates to fall substantially in the next two years, which bond would you prefer to hold? Bond with a coupon rate 8% Bond with a coupon rate 18.00%

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