A firm’s bonds have a maturity of 12 years with a $1,000 face value, have an 6% annual coupon, are callable in 6 years at $1,070, and currently sell at a price of $1200. What return should investors expect to earn on these bonds? (Note: You will need to calculate YTM and YTC to answer this question)

1/3 + 1/3 ≠ 2/6 because 1/3 alone = 2/6  

step by step explanation:

1/3 + 1/3 = 2/3       2/3=4/6

it is only things thain can be deafeated

step-by-step explanation:

ending amount = beginning amount / (2^n)

where "n" = number of half-lives (or elapsed time / half-life)

ending amount = 50 mg / (2 ^10 / 5.3)

ending amount = 50 mg / (2 ^ 1.8867924528)

ending amount = 50 m / 3.6981210597

ending amount = 13.5203794557 mg

or about 13.5 mg remain

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