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The bonds of ABC Inc are currently selling for $1,250. The annual coupon payment of these bonds is $90. The bonds have a par value

The bonds of ABC Inc are currently selling for $1,250. The annual coupon payment of these bonds is $90. The bonds have a par value of $1,000 and a maturity period of 25-years; however, they are callable in 5 years at the call price of $1,050.Assume that no additional costs are incurred and that a yield curve is horizontal. Calculate the difference between the bond's YTM and its YTC? Who gets the benefit from callable bonds? Complete calculation is required. (on paper or on ms word)

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