Compute what is the yield to call

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Question 1: ABC Inc. recently issued $1,000 par bonds at a 5.25% coupon rate. The bonds have 15 years to maturity and the current price of the bond is $820. If the call price is $1,150 and the bond can be called in 8 years, Determine what is the yield to call? Assume semi-annual compounding.

Reference no: EM132483049

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