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Based on your risk assessment, your required rate of return is 9 percent for a callable bond you own. This is a new bond with
Based on your risk assessment, your required rate of return is 9 percent for a callable bond you own. This is a new bond with 20 years to maturity. It is a $1,000 par value bond paying 10 percent interest annually. The market price of the bond is $950.
The bond may be called any time after 3 years and the call premium is $200.
Find the yield-to-call.
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