A 640 percent coupon bond with 28 years left to maturity


A 6.40 percent coupon bond with 28 years left to maturity can be called in nine years. The call premium is one year of coupon payments. It is offered for sale at $1,106.25.

What is the yield to call of the bond? (Assume interest payments are semiannual.)

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Financial Management: A 640 percent coupon bond with 28 years left to maturity
Reference No:- TGS01530241

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