A 6.35 percent coupon bond with 27 years left to maturity can be called in eight years. The call premium is one year of coupon payments. It is offered for sale at $1,095.75. What is the yield to call of the bond? (Assume interest payments are semiannual.

A 6.35 percent coupon bond with 27 years left to maturity can be called in eight years. The call premium is one year of coupon payments. It is offered for sale at $1,095.75. What is the yield to call of the bond? (Assume interest payments are semiannual.

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Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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