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A 550 percent coupon bond with 14 years left to maturity

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Reference no: EM13483792 , Length: 5

A 5.50 percent coupon bond with 14 years left to maturity can be called in 4 years. The call premium is one year of coupon payments. It is offered for sale at $1,092.50.

Required:

What is the yield to call of the bond? (Assume that interest payments are paid semi annually.) (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM13483792

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