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Question 10 (1 point) You are planning to invest in 8% annual coupon bonds that are callable and have 15 years left until maturity Then
Question 10 (1 point) You are planning to invest in 8% annual coupon bonds that are callable and have 15 years left until maturity Then bonds pay interest annually The bonds have a par value of $1,000, and their current market price is $900 The bonds may be called in seven years at a call price of $1,080. Calculate the current yield a) 9.3% b) 10.9% Oc) 8.9% d) 8.0% e) 10.0%
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