A firms bonds have a maturity of 14 years with a 1000 face


Yield to maturity

A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 7 years at $1,241, and currently sell at a price of $1,411.89.

  1. A. What is their nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.
  2. B. What is their nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.

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Business Management: A firms bonds have a maturity of 14 years with a 1000 face
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