Market price of the bond

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Compute the YTC of a 10% coupon bond, with a $1,000 face value maturing 10 years from now, but callable in 5 years with a call price of $1,200. Assume the market price of the bond to be $880 and that the coupons are:

a) paid annually.
b) paid semi-annually.

Reference no: EM131728439

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