Suppose a 10-year, 10 percent, semiannual coupon bond with a par value of $1,000 is currently...

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Suppose a 10-year, 10 percent, semiannual coupon bond with a parvalue of $1,000 is currently selling for $1,135.90, producing anominal yield to maturity of 8 percent. However, the bond can becalled after 5 years for a price of $1,050.
a. What is the bond's nominal yield to call (YTC)?
b. If you bought this bond, do you think you would be morelikely to earn the YTM or the YTC? Why

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Suppose a 10-year, 10 percent, semiannual coupon bond with a parvalue of $1,000 is currently selling for $1,135.90, producing anominal yield to maturity of 8 percent. However, the bond can becalled after 5 years for a price of $1,050.a. What is the bond's nominal yield to call (YTC)?b. If you bought this bond, do you think you would be morelikely to earn the YTM or the YTC? Why