Calculate the yield-to-maturity and yield-to-call of bond

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Question

A 12-year, 7.5% bond is callable in 4 years at a call price of $1,045. If the bond pays semi-annual coupons and is currently selling for $1,038, then calculate the Yield-to-Maturity (YTM) and Yield-to-Call (YTC) of the bond. Comment if the bond will likely be called.

The response paper should be in APA format, double spaced, hand-written, numbered pages, with a cover page and references.

Reference no: EM132326983

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