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Assume that a bond has an annual stated coupon rate of 1 0 percent ( interest is paid semi - annually ) , a maturity

Assume that a bond has an annual stated coupon rate of 10 percent (interest is paid semi- annually), a maturity value of $1,000, will mature in 10 years, and is currently selling for $926.08. Also assume that the firm has the right to call this bond in 5 years, but would have to pay a call premium of $125. Determine by how much the yield-to-call exceeds the yield- to-maturity for this bond. 1.92%1,54%2.66%1.15%2.30%

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