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A Mutt Muffin Manufacturing Corporation bond, which has a $1,000 par value and 7.3% stated annual coupon interest rate (with interest payments received semiannually), currently

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A Mutt Muffin Manufacturing Corporation bond, which has a $1,000 par value and 7.3% stated annual coupon interest rate (with interest payments received semiannually), currently sells for a price of $968. The bond was issued four years ago with a 30-year life, but it can be called by the issuing firm as early as ten years after the original issue date. If the bond is called, the holder receives a premium of $73, in addition to the par value, at the call date. Which of the five equations shown would you use in computing the bond holder's YIELD TO CALL?

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.f 5 lltfnoisStateUniwersftth x 'y' FIL 24o;5pring1994__ x K" Homework HeEp-QBIAI: x \x 8 X (- C I 9 Secure I htlpSWreggienetjllinmSstale'edulaccesslcomarm/attachmaul/Ubbc963d-ca7c-4c49-9207-93ba16290c6de5!s%207%ZDQulzze5,/S16425l7-034d-46da-ad39-d6SSaadSa126/24". ' (E E FIL 2-10f5pring 1994i iExam 11: Form A 14;) 1 52 EQUATION 1: $1373 : $36.50 % + sum ( +r 1,(;)'2 1 12 EQUATION 2: $968 = $35.50 (A) + 51,073 [) r' 1+r 1- 2a EQUATION 3: $968 = $36.50 (A) + 51,000 ( 1 12:: r 1+r +r 14;)" 12 EQUATION 4: $1,000 2 $36.50 (%) + $1.073 (L) , L 2" 20 EQUATION 5: 51,073 = $36.50 () + 5963 (L) +r 0 Type hereto search

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