Evaluate the term capital budgeting

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Evaluate the term Capital budgeting

Yield to call

Hood Corporation recently issued 20-year bonds. The bonds are selling for $1,106.78 per share and they have a coupon rate of 8 percent and pay interest semi-annually. Also, the bonds are callable in 6 years at a call price equal to $1,150. The par value of the bonds is $1,000. What is the yield to call of Hood Corporation's bonds?

Reference no: EM1313279

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