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An 8 percent coupon municipal bond has 15 years left to maturity and has a price quote of 102.0. The bond can be called in
An 8 percent coupon municipal bond has 15 years left to maturity and has a price quote of 102.0. The bond can be called in 6 years. The call premium is one year of coupon payments. Compute the Bond's yield to call and determine if the bond will be called. Assume interest payments are paid semi-annually and par value of $5,000.
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