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Assume that a 10-year bond pays a $32 coupon every six months and will mature for $1,000. Also assume that the expected 6-month current yield
Assume that a 10-year bond pays a $32 coupon every six months and will mature for $1,000. Also assume that the expected 6-month "current" yield on this bond is 3.16277103 percent. Given this information, you should be able to determine the yield to maturity for this bond. Now, assuming that the firm can call the bond in 5 years at a call price of $1,039, you should be able to determine the yield to call for this bond. Given this information, determine the difference between the YTC and the YTM.
Answer Choices:
0.4627%
0.5466%
0.3784%
0.6302%
0.7180%
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