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XY Holdings has just issued a callable (at par) ten-year, 4.625% coupon bond with annual coupon payments. The bond can be called at par
XY Holdings has just issued a callable (at par) ten-year, 4.625% coupon bond with annual coupon payments. The bond can be called at par in five years or anytime thereafter on a coupon payment date. It has a price of $89.250 per $100 face value, implying a yield to maturity of 6.09%. < (1) What is the bond's yield to call? (5 points) < (2) Will XY Holdings make the call? (2 points)
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