What are the yield to maturity and the yield to call of a


a ) what are the yield to maturity and the yield to call of a 20 year, 8% bond that is selling for $1150 has a call value of $1100 in year 6? Which will the investor make? b) We buy a 15 year, 10% bond yielding 9%. We sell it after 4 years when market rates are 12%. What is the realized compound yield during the 4 years, if YTM decreases, as soon as we buy it, and it remains at 6% for the 4 year duration?

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Financial Management: What are the yield to maturity and the yield to call of a
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