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Lynna [10]
2 years ago
7

Regal Health Plans issued a ten-year, 12 percent annual coupon bond a few years ago. The bond now sells for $1,100. The bond has

a call provision that allows Regal to call the bond in four years at a call price of $1,060. The bond has a cell provision that allows Regal to call the bond in four years at the call price of $1,060.
a. What is the bond's yield to maturity?

b. What is the bond's yield to call?

Business
2 answers:
Mars2501 [29]2 years ago
8 0

Answer:

The solution to the given problem is done in excel and an image of the solution is attached.

What is the bond's yield to maturity?

10.35%

What is the bond's yield to call?

10.13%

RideAnS [48]2 years ago
8 0

please find the attached for the solution

Download docx
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3 years ago
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Answer:

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Explanation:

obviously the numbers are missing, so I looked for a similar question:

"A stock that sold for ​$26 per share at the beginning of the year was selling for ​$52 at the end of the year. If the stock paid a dividend of ​$9.82 per​ share, what is the simple interest rate on the investment in this​ stock? Consider the interest to be the increase in value plus the dividend."

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