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Business, 22.02.2020 03:32 adanamador8807

Purple Whale Foodstuffs Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1130.35. However, Purple Whale Foodstuffs Inc. may call the bonds in eight years at a call price of $1,060.

1. What is the TYM? -options: 8.55%, 7.09%, 9.59%, 7.64%
2. What is the YTC? -options: 7.36%, 9.59%, 7.64%, 6.47%
3. If interest rates are expected to remain constant, what is the best estimate of the remaining life left for RTE Incs bonds? -options: 8 yrs, 5 yrs, 13 yrs, 10 yrs
4. If RTE issued new bonds today, what coupon rate must have to be issued at par? -options: 8.32%, 7.64%, 7.09%, 9.59%

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