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Annasam Corporation recently issued 10-year bonds. The bonds have a coupon rate of 6 percent and pay interest semiannually. Also, the bonds are callable in
Annasam Corporation recently issued 10-year bonds. The bonds have a coupon rate of 6 percent and pay interest semiannually. Also, the bonds are callable in 4 years at a call price equal to 105 percent of par value. The par value of the bonds is $1,000. If the yield to maturity is 9 percent, what is the yield to call? (Hint: 2 part problem using PV and rate)
14.08%
8.33%
13.45%
10.20%
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