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A callable bond has 15 years to maturity and can be called in 5 years. The...

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Finance

A callable bond has 15 years to maturity and can be called in 5years. The bond’s coupon rate is 12% with semi-annual couponpayments. The par value is $1000. If the bond is called, the callprice will be $1100. The bond is currently selling for $985.35 Whatis the difference between its yield-to-call andyield-to-maturity?

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