What is the bond price and what is the current yield

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Reference no: EM13728411

Energy Tech company issued an 8% (semi-annual payment) 20 year bond 5 years ago.

a. If the yield of similar bond today is 6%, what is the bond price? What is the current yield?

b. If you expect company to call the bond 3 years from today and will pay the principal plus two years coupon interests as penalty what price you should pay for this bond?

Reference no: EM13728411

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