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A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in...

A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has just been issued.) Basic Input Data: Years to maturity: 20 Periods per year: 2 Periods to maturity: Coupon rate: 8% Par value: $1,000 Periodic payment: Current price $1,100 Call price: $1,040 Years till callable: 5 Periods till callable: a. What is the bond's yield to maturity? Peridodic YTM = Annualized Nominal YTM = Hint: This is a nominal rate, not the effective rate. Nominal rates are generally quoted. b. What is the bond's current yield? Current yield = Hint: Write formula in words. Current yield = / Hint: Cell formulas should refer to Input Section Current yield = (Answer) c. What is the bond's capital gain or loss yield? Cap. Gain/loss yield = - Hint: Write formula in words. Cap. Gain/loss yield = - Hint: Cell formulas should refer to Input Section Cap. Gain/loss yield = (Answer)

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SEE THE SCREENSHOT. ANY DOUBTS, HAPPY TO HELP YOU. THANK YOU. THUMBS UP PLEASE.

As nothing was mentioned, solved using excel.

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