Check My Wor eBook Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity.

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Check My Wor Ebook Kempton Enterprises Has Bonds Outstanding With A 1 000 Face Value And 10 Years Left Until Maturity 1 (22.61 KiB) Viewed 10 times

Check My Wor eBook Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have a 10% annual coupon payment, and their current price is $1,195. The bonds may be called in 5 years at 109% of face value (Call price = $1,090). a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % b. What is the yield to call if they are called in 5 years? Do not round intermediate calculations. Round your answer to two decimal places. %