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Which yield might the investors expect to earn

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Problem:

FS Corporate has bonds outstanding with 10 years till maturity They have an 11% annual coupon payment, and their current price is $1185. The bonds may be called in 5 years at 110% of face value. (Call price is $1100).

a) What is the YTM?

b) What is the YTC if the bonds are called in 5 years?

c) Which yield might the investors expect to earn? Why?

Reference no: EM133275836

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