A 25-year maturity, 7.1% coupon bond paying coupons semiannually is callable in six years at a call
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Question:
A 25-year maturity, 7.1% coupon bond paying coupons semiannually is callable in six years at a call price of $1,195. The bond currently sells at a yield to maturity of 6.1% (3.05% per half-year).
What is the yield to call?
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