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Company M's bonds currently sell for $1,200. They pay a $50 annual coupon, have a 20-year maturity, and a $1,000 par value, but they can

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Company M's bonds currently sell for $1,200. They pay a $50 annual coupon, have a 20-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,090. Assume that no costs other than the call premium would be Incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's yield to maturity and yield to call? (Subtract the yield to maturity from yield to call; it is possible to get a negative answer) Select one: O O O O a. 1.45% b. 1.02% c. 1.16% d. 1.35%

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