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Consider the following information for a bond: A semiannual coupon bond that pays a 6.00% coupon (annual rate), has a par value of $1000, matures

Consider the following information for a bond: A semiannual coupon bond that pays a 6.00% coupon (annual rate), has a par value of $1000, matures in 30 years, and is selling today at a discount of $124.72 from the par value. The bond has a call feature that allows the company to call the bond back after 15 years (leaving 25 years of maturity for the bond) at a callable par value of $1025.

What is the yield to call (YTC) on this bond?

A. 7.00%

B. 6.22%

C. 8.45%

D. 7.49%

E. 6.85%

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