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What is the bond YTC

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Reference no: EM132822300

Problem - You have just purchased an outstanding 15-year bond with a par value of $1,000 for $1,145.68. Its annual coupon payment is $75. We calculated the YTM of this bond (6%) in the Quick Question box. Now, assume that this bond is callable in 7 years at a price of $1,075. What is the bond's YTC? If the yield curve remains flat at its current level during this time period, would you expect to earn the YTM or YTC?

Reference no: EM132822300

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