Its promised yield to maturity

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Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at $1,012.50 when it has 12 years remaining until maturity. Compute:

a. Its promised yield to maturity.

b. Its yield to call if the bond is callable in three years with an 8 percent premium.

Reference no: EM131954609

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