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Question 10 (1 point) It is now January 1, 2014, and you are considering the purchase of an outstanding bond that was issued on January

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Question 10 (1 point) It is now January 1, 2014, and you are considering the purchase of an outstanding bond that was issued on January 1, 2010. It has a 5.20% annual coupon and it matures on December 31, 2029. There is a call protection until December 31, 2016 after which time it can be called at 104% of par. Interest rates have declined since it was issued; and it is now selling at 105% of par. a) What is the yield to maturity? b) What is the yield to call? a) 4.65%; b) 4.75% a) 5.20%; b) 4.85% Oa) 5.20%; b) 4.65% a) 4.75%; b) 4.85% a) 4.75%; b) 4.65%

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