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Suppose you have a 10%, 20 year bond traded at $1,120. If it is callable...

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Question

Finance

Suppose you have a 10%, 20 year bond traded at $1,120. If it is callable in 5 years at $1,150, what is the bond's approximate yield to call? Interest is paid quarterly.

a.

7.78%

b.

8.00%

c.

9.40%

d.

9.36%

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