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Redemption value and semi-annual coupon payments

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Reference no: EM132484889

Harry is considering adding a callable bond to his portfolio. He knows the corporate bond is callable at 7 years versus the original 10 year period, with a 2% call premium. Currently the price of the 3% coupon bond is $1,150, what is the yield to call of the bond?

Assume 1,000 redemption value and semi-annual coupon payments.

Reference no: EM132484889

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