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The Bank of Zambia using the Open Market Operations issues out government bond that matures in 1 0 years. The bond s face value is

The Bank of Zambia using the Open Market Operations issues out government bond
that matures in 10 years. The bonds face value is K1000 and pays an annual 7.5 per
cent coupon interest rate. The current price of the bond is K1,125.The bond begins to
be callable in 5 years at a call price of K1050. Calculate the yield to call

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