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Hannah is considering the purchase of a callable bond with a par value of $10,000 and a current market value of $11,250. The bond's coupon

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Hannah is considering the purchase of a callable bond with a par value of $10,000 and a current market value of $11,250. The bond's coupon rate is 11.5% and there are five years left to maturity. The bond's call date is exactly two years from now. The bond includes a $500 financial enhancement if it is called prior to its maturity date. Calculate the bond's yield-to-call. A) 4.80% B) 4.87% C) 7.06% D) 7.45%

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