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A 10 year bond is callable in 5 years. This annual coupon bond with a face value of $1,000 is selling for $900 and has
A 10 year bond is callable in 5 years. This annual coupon bond with a face value of $1,000 is selling for $900 and has a coupon rate of 2%. Which of the following is true?
Select one:
a. The Yield to Call is 4.26%
b. The Yield to Maturity is 2.00%.
c. The bond will pay no interest after 5 years have elapsed.
d. All of these statements are true.
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