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A companys bonds currently sell for $1,200 and have a par value of $1,000. The bonds pay a 10% annual coupon (i.e., one coupon per

A company’s bonds currently sell for $1,200 and have a par value of $1,000. The bonds pay a 10% annual coupon (i.e., one coupon per year) and have a 20-year maturity, but the bonds can be called in 3 years at $1,100. Compute both the yield to maturity (YTM) and the yield to call (YTC) on these bonds (to one decimal place, e.g., 5.1%) and briefly explain (in one sentence or two) which yield an investor is more likely to receive.

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