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3. Company A's callable bonds have a face value of $1,000 with 6% coupon rate (semi-annual payment) and 15 years left until maturity. The current

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3. Company A's callable bonds have a face value of $1,000 with 6% coupon rate (semi-annual payment) and 15 years left until maturity. The current market price of the bond is $1,105. Assume the bond is called back in 5 years at a call price of $1,030, what is its yield to call (YTC)? Is it higher or lower than the YTM for investors? Show the comparison

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