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4. A callable bond is currently mis-priced and trading above the call price of 102.00. The current price is 103.00 on a par value of

  1. 4. A callable bond is currently mis-priced and trading above the call price of 102.00. The current price is 103.00 on a par value of $1,000. The coupon on this bond is 4(%) (which is paid annually) and it has a final maturity of 20 years. The bond is callable after 5 years. The yield to maturity on this bond is _____________(%).
    1. 4.001
    2. 8.731
    3. 3.783
    4. 4.552

The yield to call is ___________(%)

  1. 3.785
  2. 3.758
  3. 3.703
  4. 4.000

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