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QUESTION 6 part 1) For this and the next 2 questions. A 7-year, $1,000 par bond has an 8% annual coupon with a yield to maturity of 7.5%. Coupons are paid semiannually. This bond can be called in 2 years at a call price of $1,010. Calculate the price of this bond A. $1,026.48 B. $1,026.85 C. $1,009.13 D. None of the above part 2) Assuming that the above bond will be called, calculate the yield to call. A. 7.018% B. 7.218% C. 3.506% D. 7.012% E. 7.791% F. None of the above part 3) For the above bond, calculate the CURRENT YIELD. A. 7.018% B. 7.218% C. 3.506% D. 7.012% E. 7.791% F. None of the above.

QUESTION 6 part 1) For this and the next 2 questions. A 7-year, $1,000 par bond has an 8% annual coupon with a yield to maturity of 7.5%. Coupons are paid semiannually. This bond can be called in 2 years at a call price of $1,010. Calculate the price of this bond A. $1,026.48 B. $1,026.85 C. $1,009.13 D. None of the above part 2) Assuming that the above bond will be called, calculate the yield to call. A. 7.018% B. 7.218% C. 3.506% D. 7.012% E. 7.791% F. None of the above part 3) For the above bond, calculate the CURRENT YIELD. A. 7.018% B. 7.218% C. 3.506% D. 7.012% E. 7.791% F. None of the above.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Please show complete steps teacher. Thanks. QUESTION 6 part 1) For this and the next 2 questions. A 7-year, $1,000 par bond has an 8% annual coupon with a yield to maturity of 7.5%. Coupons are paid semiannually. This bond can be called in 2 years at a call price of $1,010. Calculate the price of this bond A. $1,026.48 B. $1,026.85 C. $1,009.13 D. None of the above part 2) Assuming that the above bond will be called, calculate the yield to call. A. 7.018% B. 7.218% C. 3.506% D. 7.012% E. 7.791% F. None of the above part 3) For the above bond, calculate the CURRENT YIELD. A. 7.018% B. 7.218% C. 3.506% D. 7.012% E. 7.791% F. None of the above.
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