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What is the yield to call annually

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Reference no: EM132945938

Question - A 10-year maturity, 8.5% coupon bond paying coupons semiannually is callable in five years at a call price of $1,070. The bond currently sells at a yield to maturity of 7.00% (3.50% per half-year).

Required -

a. What is the yield to call annually?

b. What is the yield to call annually if the call price is only $1,020?

c. What is the yield to call annually if the call price is $1,070, but the bond can be called in two years instead of five years?

Reference no: EM132945938

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