What is the bond nominal yield to maturity when called

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Reference no: EM13282534

Mega Industries Corp has eighteen years of a bond outstanding to maturity, an 8.25% nominal coupon, with semiannual payments. The bond has a 6.5% nominal yield to maturity and can be called at a price of $1,120.

a. what is the bond's nominal yield to maturity when called?

b. what is the bond's effective yield? If the inflation rate is 2.95% what is the real rate of return?

Reference no: EM13282534

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