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Suppose that a callable bond has an 8% coupon, a 6%YTM, and a 4% YTC. The bond issue is callable in 3 years. For this

Suppose that a callable bond has an 8% coupon, a 6%YTM, and a 4% YTC. The bond issue is callable in 3 years. For this bond issue, investors would expect the bonds 1. Not be called and earn the YTM 2. Not be called and earn the YTC 3. To be called and earn the YTM 4. To be called and earn the YTC

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