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McCue Inc.s bonds currently sell for $1,150. They pay an 8% coupon, semiannual, have a 25-year maturity, and a $1,000 par value, but they can

McCue Inc.s bonds currently sell for $1,150. They pay an 8% coupon, semiannual, have a 25-year maturity, and a $1,000 par value, but they can be called in 5 years at par value plus a call premium of one coupon payment. 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 yield to call (YTC)?

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