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A 6.75% coupon bond with 13 years left to maturity can be called in 2 years. The call premium is one year of coupon payments.
A 6.75% coupon bond with 13 years left to maturity can be called in 2 years. The call premium is one year of coupon payments. It is offered for sale at $919.75. What is the yield to call of the bond? Assume interest payments are paid semiannually.
| 12.14% | |
| 7.27% | |
| 14.54% | |
| 8.29% |
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Port Infrastructure Finance
Authors: Hilde Meersman, Eddy Van De Voorde, Thierry Vanelslander
1st Edition
0415720060, 978-0415720069
