What would be its price relative to the xy

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Determine the current market prices of the following $1,000 bonds if comparable raste is 10% and answer the following questions.
XY 5.25% (interest paid annually) for 20 years
AB 14% (interest paid annually) for 20 years
a. which bond has a current yeild that exceeds the yeild to maturity?
b. which bond may you expect to be called?why?
c. if CD, inc., has a bond with a 5.25% coupon and a maturity of 20 years but which was lower rated, what would be its price relative to the XY, Inc., bond? Explain.

Reference no: EM13283746

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