test - call and refund the bond and also assume that the...

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Mcque bond currently sell for 1250 they pay 120 annual coupon, 15 year maturity, 1000 par value, it can be called in 5 years at 1050, assume that no other costs other than the call premium will be incurred to
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Unformatted text preview: call and refund the bond and also assume that the yield curve is horizontal with the rates expected to maintain at current levels into the future, what is the difference btwe the ytm and ytc...
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This note was uploaded on 08/11/2010 for the course AT 2012 taught by Professor Wang during the Spring '10 term at Punjab Engineering College.

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