Question

four years ago, your firm issued $1,000 par, 25-year bomds, with a 9% coupon rate and...

four years ago, your firm issued $1,000 par, 25-year bomds, with a 9% coupon rate and a 12% call premium. Assume semiannual compounding.

A. if these bonds are now called, what is the actual yield to call for the investors who originally purchased them at par? do not round intermeduate calculations. round answer to two decimal places.

b. if the current interest rate on the bond is 6% and the bonds were not callable, at what price would each bond sell?

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