Bond is always redeemed at the par value

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Reference no: EM131880796

Michelle wants to invest in a 20-year callable bond which is sold at 975 with a face value of 1000. The bond can be redeemed at the end of year 17, 18, 19, and 20. Which year Michelle should use to calculate her minimal annual yield rate if the bond is always redeemed at the par value?

A. 18 B. not enough time to determine C. 19 D. 20 E. 17

Reference no: EM131880796

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