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Question 7 - April/May 2013 Exam Paper QUESTION 2 Part II - 6 marks (a) A 9% annual coupon bond is maturing in 8 years

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Question 7 - April/May 2013 Exam Paper QUESTION 2 Part II - 6 marks (a) A 9% annual coupon bond is maturing in 8 years with a current selling price of $800. If this bond was called at a call price of $1,100 at the end of year 5 , what would be its yield to call? Discuss if the bond is likely to be called

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