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Currently, Texana Inc.'s bonds sell for $1,350. They pay an annual coupon rate of 11%, have a 15-year maturity, and a $1,000 par value, but

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Currently, Texana Inc.'s bonds sell for $1,350. They pay an annual coupon rate of 11%, have a 15-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,075. 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 YTM and its YTC? Answer YTM Answer YTC Difference in the previous question, if interest rates in 6 years were at 5%, would the bonds be called; yes or no

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