As a bond analyst at Morgan Stanley Investment Banking, you are performing an analysis on...

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Finance

As a bond analyst at Morgan Stanley Investment Banking, you are performing an analysis on bond yield. You have the following data for a bond issued by Intel Corp. The bond has 7% coupon and 20-year maturity. The bond sells for $1,150 and is callable in 10 years at a call price of $1,250. The bond has a face value of $1000 and makes semiannual coupon payments. a. What is the annual Yield to Call? (sample answer: 12.45%) b. What is the annual Yield to Maturity? (sample answer: 12.45%)

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