Problem 10-22 Yield to Call (LO1, CFA3) Fooling Company has a callable bond outstanding with a coupon of 11.8 percent,...

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Problem 10-22 Yield to Call (LO1, CFA3) Fooling Company has a callable bond outstanding with a coupon of 11.8 percent, 25 yea

Answer 1

Answer #1

PMT = fv x coupon rate/2 FV = call value price = pv NPER (number of payments) rate = YTC+2 -RATE(NPER,PMT,-PV,FV) 10.76% [Rat

Answer 2

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