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Hey Chegg, I could really use your help with this problem. I tried solving it...

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Finance

Hey Chegg, I could really use your help with this problem. I tried solving it on my own but I am not sure if my approach is correct.

There is a callable 6%, 30 year bond which sells for $1,250. If it is callable after 7 years at $1,100, compute its YTC and YTM. What will be the likely case? Will the issuer call it , or not and why yes or no?

Please include the formula for both YTC and YTM. Also, please show work step by step. Please answer the 2 questions What will be the likely case? Will the issuer call it , or not and why yes or no? in detail and explanation. I'm sorry if that is asking too much, but it is really important that I understand how to solve this problem correctly.

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