What is the bond annualized yield to maturity

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A 30-year, $1,000 par bond has a 7% annual coupon rate. The bond is callable after the 5th year for a call premium of $1,060. If the bond is trading with annualized yield to call (YTC) of 8%, what is the bond’s annualized yield to maturity (YTM)? What is the bond’s current yield? Assume the bond pays interest semiannually (i.e., twice a year).

Reference no: EM131887332

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