What is the bond price based on the market yield

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Reference no: EM132941636

The market yield on a 15-year, 8.5% bond is 7.5%. The bond makes semi-annual coupon payments and is callable in 5 years at a call price of $1,085.

Problem 1:
What is the bond price based on the market yield?

Problem 2:
What is the bond's yield to call?

Problem 3:
Is this bond likely to be called? Explain.

Reference no: EM132941636

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