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A 10-year maturity, 4% coupon bond paying coupons annually is callable in four years at a call price of $1,050. The bond currently sells at

A 10-year maturity, 4% coupon bond paying coupons annually is callable in four years at a call price of $1,050. The bond currently sells at a yield to maturity of 3%. a. What is the yield to call? Hint: First calculate the price of the bond, then compute the yield to maturity if the bond is called.

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