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XZYY, Inc. currently has an issue of bonds outstanding that will mature in 33 years. The bonds have a face value of $1,000 and a
XZYY, Inc. currently has an issue of bonds outstanding that will mature in 33 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 13% with annual coupon payments. The bond is currently selling for $848. The bonds may be called in 5 years for 116% of par value. What is your expected quoted annual rate of return if you buy the bonds and the company calls them when possible?
20.25% |
15.36% |
22.25% |
16.81% |
13.77% |
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