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B. Madison General Insurance Ltd. has issued a K155, 000 par value bond with a call provision. The 5-year bond has a coupon rate of

B. Madison General Insurance Ltd. has issued a K155, 000 par value bond with a call provision. The 5-year bond has a coupon rate of 10%. Suppose the bond was called after 3 years. Find the YTC if the call premium is 10% of par value. [6 marks]

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