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(Solved): A tirm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, ...




A tirms bonds have a maturity of 14 years with a \( \$ 1,000 \) face value, have an \( 11 \% \) semiannual coupon, are calla
A tirm's bonds have a maturity of 14 years with a face value, have an semiannual coupon, are callable in 7 years at , and currentiy sell at a price of \$1,385.79. What are their nominal yeld to maturity and their nominal yleld to call? Do not round intermediate caiculations, Round your answers to two decimal piaces. YTM: YTC: What return should investors expect to eam on these bonds? 1. Investors would not expect the bonds to be called and to eam the YTM because the YTM is greater than the YTC. 1I. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. IIL. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. TV. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM.


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