A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 6% annual coupon, are callable in 6 years at $1,070, and currently sell at a price of $1200. What return should investors expect to earn on these bonds? (Note: You will need to calculate YTM and YTC to answer this question)

the answer is:

the answer is:

to solve the problem, we need to remember the quotient of power property, it's defined by the following relation:

if we have a quotienf of powers that have the same base, we need to keep the same base and subtract the exponent of the denominator power to the exponent of the numerator power.

so, we are given the expression:

then, calculating we have:

hence, the answer is:

have a nice day!

the answer is $42.96

step-by-step explanation: