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2. A bond is selling for $1100. The coupon rate is 6.5% and interest payments are paid semiannually. The bond has a par value of

2. A bond is selling for $1100. The coupon rate is 6.5% and interest payments are paid semiannually. The bond has a par value of $1000. The bond matures in 25 years but can be called in 9 years. The call premium is one year of coupon payments.

Calculate the following: Yield to call and specify the call premium

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