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Unformatted text preview: face value. If the price of the bond is $850, what is the yield-to-maturity? 3. What is the current yield on these 10-year HP bonds? 4. What is the yield-to-call if the bonds can be called in 5 years at a call premium of $1,200? 5. Given the above information, which bond do you expect would have a lower rating, MCD or HP?...
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- Spring '08