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Posted on Jul 17, 2024

A 6 . 2 0 percent coupon bond with 2 4 years left to maturity can be called in nine years. The call premium is

6.20

percent coupon bond with

24

years left to maturity can be called in nine years. The call premium is one year of coupon payments. It is offered for sale at $

1, 115.25 .

What is the yield to call of the bond?

(

Assume interest payments are semiannual.

)

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