A 10-year 12 semiannual coupon bond with a par value of


A 10-year, 12 % semiannual coupon bond with a par value of $1,000 may be called in 4 years, at a call price of $1,060. The bond sells for $1,300. (Assume the bond has just been issued). a. What is the bond’s yields to maturity? b. What is the bond’s current yield? c. What is the bond’s capital gain or loss yield in the first year? d. What is the bond’s yield to call?

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Financial Management: A 10-year 12 semiannual coupon bond with a par value of
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