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A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year
A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one year after release or any time after that on a coupon payment date. On release, it has a price of $1,040 per $1,000 of face value. What is the yield to worst of this when it is released?
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