One year later interest rates have fallen from 9 to 4


Suppose you purchase a 15-year, 9% annual coupon, $1,000 par value bond with a call provision after 10 years at a call price of $1,100. One year later, interest rates have fallen from 9% to 4% causing the value of the bond to rise to $1,528.16. What is the bond's yield to call?

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Financial Management: One year later interest rates have fallen from 9 to 4
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