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11. The callable bond has a par value of 100 LT, 8% coupon rate and five years to maturity. The bond makes annual interest payment.
11. The callable bond has a par value of 100 LT, 8% coupon rate and five years to maturity. The bond makes annual interest payment. Investor purchased this bond for 90 LT when it was issued in May 2008. a) What is the yield-to-maturity of this bond? b) What is the duration of this bond if currently its market price is 95 LT
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