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Suppose you have a 15 percent, 25-year bond traded at $975. If it is callable in 5 years at $1050, what is the bond's yield

Suppose you have a 15 percent, 25-year bond traded at $975. If it is callable in 5 years at $1050, what is the bond's yield to call? Interest is paid annually.

a.

8.52 percent

b.

16.5 percent

c.

7.65 percent

d.

9.64 percent

e.

15 percent

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