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Debt financing for Boeing Corporation

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Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semi-annual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $99. What is the bond yield to maturity (YTM) and yield to call (YTC)?

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The solution examines debt financing for Boeing Corporation. There is a 5% coupon bond with semi-annual coupon payments.

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