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A 7.0 percent coupon bond with 25 years left to maturity can be called in four years. The call premium is one year of coupon
A 7.0 percent coupon bond with 25 years left to maturity can be called in four years. The call premium is one year of coupon payments. It is offered for sale at $1,066. What is the yield to call of the bond? (Assume that interest payments are paid annually and par value is $1,000.)
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