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    Debt financing for BEA Industries

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    BEA Industries has just issued a callable (at 102) ten-year, 8% coupon bond with semi-annual coupon payments. The bond can be called at 102 in three years or anytime thereafter on a coupon payment date. It has a current price of 99. What is the Yield to Maturity (YTM) on this bond and the Yield to Call (YTC) on this bond?

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    Solution Summary

    The solution examines debt financing for BEA industries. There is an 8% coupon bond with semi-annual coupon payments.