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A 9% coupon bond, semi-annual payments, 20 years to maturity is callable in 5 years at a call price of $1,200. The bond currently sells
A 9% coupon bond, semi-annual payments, 20 years to maturity is callable in 5 years at a call price of $1,200. The bond currently sells at a yield to maturity of 7%. What is the yield to call? What is the yield to call if the call price is only $1,150?
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