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Answer for the question:
Bond Calculations: 1) Avon Products Note 06.5% Coupon: 6.500% Maturity 5 years Rating: Moodys: BAA3 Price: $108.093 Calculate: Yield to maturity S&P: BBB- 2) SAFEWAY INC SR NT 5.00000% Coupon: 5.000% Maturity: 5 years Rating: Moodys'BAA3 Price: $101.180 S&P: BBB a) Calculate: Yield to maturity b) Suppose the bond is callable in 3 years at $ 110. Using the price above find the yield to call Hint: use the FV to be $110 instead of $ 100. And the time to maturity 3 years instead of 5 years
Is given in the attachment.
Explanation:
