Yield to call and realized rates of return

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Reference no: EM131600912

Yield to Call and Realized Rates of return

Seven years ago, Goodwynn & Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon rate and a 9% call premium. Today, G&W called the bonds. The bonds originally were sold at their face value of $1,000. Compute realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price.

Reference no: EM131600912

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