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Business, 27.06.2019 20:00 alfonso55

Currently, bruner inc.'s bonds sell for $1,250. they pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050. assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, that is, rates are expected to remain at current levels on into the future. what is the difference (in percentage points) between this bond's yield to maturity and its yield to call?

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Currently, bruner inc.'s bonds sell for $1,250. they pay a $120 annual coupon, have a 15-year maturi...
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