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20) A company issues a callable (at par) five ' year, 7% coupon bond with annual coupon payments. 20) The bond can be called at
20) A company issues a callable (at par) five ' year, 7% coupon bond with annual coupon payments. 20) The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $110 per $100 of face value. What is the yield to call of this bond when it is released? A) 5.66% B) 2.73% C) 1.40%% D) 4.71%
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