question 2 Yummy Tummy Bakeries has issued a 30 year...
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question 2
Yummy Tummy Bakeries has issued a 30 year par value bond that is callable in 5 years. If the coupon rate is 5.5% per year payable semi-annually, what is the bond's yield to call if the yield to maturity is 8% and the call premium is one year's interest? Assume that the bonds are selling for $716.76 in the market. 18.91% 10.62% 14.42% 12.65% Yummy Tummy Bakeries has issued a 30 year par value bond that is callable in 5 years. If the coupon rate is 5.5% per year payable semi-annually, what is the bond's yield to call if the yield to maturity is 8% and the call premium is one year's interest? Assume that the bonds are selling for $716.76 in the market. 18.91% 10.62% 14.42% 12.65%
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