A 20 year corporate bond has a 9 percent coupon rate and a


A 20 year corporate bond has a 9 percent coupon rate and a yield to maturity of 12 percent. Assume a face value of $1,000 and the payments are semiannual. What is the price? If this corporate bond had a call option on it which said the corporation could call the bond in 5 years at a premium of 1025. What is the bonds YTC?

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Financial Management: A 20 year corporate bond has a 9 percent coupon rate and a
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