The bond has a call provision that allows regal to call the


Question:

7 Regal Health Plans issued a 12 percent annual coupon bond with a $1,000 par value a few years ago. The bond now has ten years remaining to maturity and sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060.

a. What is the bond's yield to maturity?

b. What is the bond's yield to call?

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Corporate Finance: The bond has a call provision that allows regal to call the
Reference No:- TGS01623803

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