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Sommers Co . ' s bonds currently sell for $ 1 , 0 8 0 and have a par value of $ 1 , 0

Sommers Co

.'

s bonds currently sell for $

1, 080

and have a par

value of $

1, 000 .

They pay a $

100

annual coupon and have a

10 -

year

maturity, but they can be called in

5

years at $

1, 125 .

What is

their yield to maturity

(

YTM

) ?

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