Piven Construction's bonds mature in 13 years. The bonds have a 7 percent semiannual coupon and a par value of $1,000. The bonds are callable in five years at a call price of $1,035. The price of the bonds today is $1,080. Assuming that interest rates remain at the same level they are today, what yield can investors expect to earn on these bonds?

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The Answer of Piven Construction's bonds mature in 13 years. The bonds have a 7 percent semiannual coupon and a par value of $1,000. The bonds are callable in five years at a call price of $1,035. The price of the bonds today is $1,080. Assuming that interest rates remain at the same level they are today, what yield can investors expect to earn on these bonds?

Piven Construction's Bonds Mature in 13 Years