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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 11.60% 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) 11.60%; b) 11.21% O a) 11.60%; b) 10.76% a) 10.76%; b) 10.93% a) 10.93%; b) 11.21% a) 10.93%; b) 10.76%

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