What is the yield you could expect on this bond

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Reference no: EM132062007

Assume that you are interested in a 4.25 percent coupon corporate bond that has eighteen years left to maturity, but can be called back in four years for a premium of one year’s worth of interest payments. If coupon payments are semiannual, and the bond is currently selling for $1,075, what is the yield you could expect on this bond if you held it until it can be called?

Reference no: EM132062007

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