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Calculate the realized rate and ytc for investors

Problem:

A company sold a 20-year bond having a 12% annual coupon interest rate and an 8% call premium 7 years ago. The bond originally sold at a par value of $1,000 and are now being called.

Calculate the realized rate, YTC, for investors who purchased these bonds when they were issued and who surrender them today in exchange for the call price. Do not interpolate.

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Finance Basics: Calculate the realized rate and ytc for investors

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