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6-17 Channel Marker Ships (CMS) has a 14-year callable bond with a $1,000 face value and a call value, or redemption price, equal to $1,070.

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6-17 Channel Marker Ships (CMS) has a 14-year callable bond with a $1,000 face value and a call value, or redemption price, equal to $1,070. The coupon rate of interest is 7 percent, which is paid semiannually. Currently, the bond is selling for $886. (a) What is the bond's yield to maturity (YTM)? (b) If the bond can be called in six years, what is its yield to call (YTC)? (LO 6-4)

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