Target’s bonds currently sell for $924. They pay a $148 annual coupon, have an 18-year maturity, and a face value of $1,000, but they can be called in 10 years at $1,512. Their yield to call (YTC) is closest to   A. 10.85%. B. 13.74%. C. 16.71%. D. 18.64%. Clear my choice

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Q: Am. 107.

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A:

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Q: all subparts

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Q: e current bond price f

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Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.