Compute the realized rate of return iy for an investor who


Yield to Call - Five years ago, Wyatt Corporation sold a 25-year bond issue with a 12% annual coupon rate and an 6% call premium. TODAY, they called the bonds. The bonds were originally sold at their face or par value of $1,000. Compute the realized rate of return, I/Y, for an investor who purchased the bond WHEN it was issued and who surrenders it today at the CALL price.

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Finance Basics: Compute the realized rate of return iy for an investor who
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