What is the bond yield to call

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Reference no: EM132065881

Intel had just issued a callable (at par) ten-year, 6% coupon bond with annual coupon payments three years ago. After the first issuing, the bond can be called at $94 in five years or anytime thereafter on a coupon payment date. Now it has a price of $106 per $100 face value, what is the bond’s yield to call? For the first time, should Intel call the bond?

Reference no: EM132065881

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