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Business, 10.03.2020 04:38 lilytimpsonx

RTE 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 $1,070.35. However, RTE Inc. may call the bonds in eight years at a call price of $1,060. What are the YTM and the yield to call (YTC) on RTE Inc.’s bonds?

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RTE Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bon...
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