What is the yield to call of a twenty-year maturity bond

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Problem 1: What is the yield to call of a 20-year maturity bond that pays a coupon rate of 9.03 percent per year, has a $1,000 par value, and is currently priced at $791? The bond can be called back in 8 years at a call price $1,078. Assume annual coupon payments.

Reference no: EM133010458

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