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Yummy Tummy Bakeries has issued a 30 year par value bond that is callable in 5 years. If the coupon rate is 7.5% per year
Yummy Tummy Bakeries has issued a 30 year par value bond that is callable in 5 years. If the coupon rate is 7.5% per year payable semi-annually, what is the bond's yield to call if the yield to maturity is 9% and the call premium is one year's interest? Assume that the bonds are selling for $716.76 in the market. Assume that the bond is called in five years. 17.17% 14.65% 15.92% 14.42%
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