Solution-What was the yield to call at the time the bonds

What was the yield to call at the time the bonds were issued

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Problem - Goodwynn & Wolf Incorporated (G&W) issued a bond 7 years ago. The bond had a 20-year maturity, a 14% coupon paid annually, a 9% call premium and was issued at par, $1,000. Today, G&W called the bonds. If the original investors had expected G&W to call the bonds in 7 years, what was the yield to call at the time the bonds were issued?

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What was the yield to call at the time the bonds were issued

Reference no: EM132735742

Reference no: EM132735742

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