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Suppose a corporation’s bonds have a current market price of $1400. The bonds have a 13% annual coupon rate, a $1000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 107% of face value. Complete parts (a) through (c) below.
a)Compute the bonds’ current yield.
b)Compute the yield to maturity.
c)Find the yield to call, if the bonds are called in 5 years.