What would expect about probability of bond being called

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A bond has a coupon rate of 6.5%, pays annual coupons, has 8 years to maturity and sells for $1,045. It is callable in 3 years at a price of $1,100.

Problem 1: What is the yield to maturity?

Problem 2: What is the yield to call?

Problem 3: What would you expect about the probability of this bond being called?

Reference no: EM132887742

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