Compute the yield to call

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Reference no: EM132025154

Compute the Yield to Call (YTC) of a 9% coupon bond, with a $1,000 face value maturing 20 years from now, but callable in 10 years with a call price of $1,300. Assume the market price of the bond to be $750 and that the coupons are:

a) paid annually.

b) paid semi-annually.

Reference no: EM132025154

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