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Assume that you purchased an 8%, 25-year, $1,000 par, semiannual payment bond priced at $1,014.50 when...

Assume that you purchased an 8%, 25-year, $1,000 par, semiannual payment bond priced at $1,014.50 when it has 15 years remainIts yield to call if the bond is callable in five years with an 11% premium? Do not round intermediate calculations. Round your answer to two decimal placesing until maturity. Compute:

  1. Its promised yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.

  2. Its yield to call if the bond is callable in five years with an 11% premium? Do not round intermediate calculations. Round your answer to two decimal places

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Answer #1

PMT = fv x coupon rate/2 FV = face value price = pv NPER (number of payments) rate = YTM -RATE(NPER,PMT,-PV,FV)x2 7.83% 30 L

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