Question
A callable bond pays annual interest of $5, has a par value of $100, matures in 10 years but is callable in 7 years at
A callable bond pays annual interest of $5, has a par value of $100, matures in 10 years but is callable in 7 years at a price of $110, and has a value today of $106. Calculate the yield to call. Group of answer choices
5.18%
5.27%
5.39%
5.58%
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Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
