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What is the yield to maturity of bond

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Reference no: EM131972243

Suppose that a 20 year 10% annual coupon bond sells for $950, and the bond has a face value of $1,000.

a) What is the yield to maturity (YTM) of this bond?

b) What is the bonds current yield (CY)?

c) What is the bonds expected capital gains (CGY)?

d) Suppose that this bond can be called in 7 year for a 5% call premium. Find the bonds expected YTC.

Reference no: EM131972243

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