question archive Yield to maturity
Subject:FinancePrice:2.87 Bought7
Yield to maturity. A firm's bonds have a maturity of 8 years with a 1000 face value, have an 11% semiannual coupon, are callable in 4 years at $1154, and currently sell at a price of $ 1283.09. What are their nominal yield to maturity and their nominal yield to Call? WHat return should investors expect to earn on these bonds?
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