XZYY, Inc. currently has an issue of bonds outstanding that will mature in 25 years. The...

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XZYY, Inc. currently has an issue of bonds outstanding that willmature in 25 years. The bonds have a face value of $1,000 and astated annual coupon rate of 12.0% with annual coupon payments. Thebond is currently selling for $959. The bonds may be called in 4years for 112.0% of the par value. What is your expected quotedannual rate of return if you buy the bonds and hold them untilmaturity?

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XZYY, Inc. currently has an issue of bonds outstanding that willmature in 25 years. The bonds have a face value of $1,000 and astated annual coupon rate of 12.0% with annual coupon payments. Thebond is currently selling for $959. The bonds may be called in 4years for 112.0% of the par value. What is your expected quotedannual rate of return if you buy the bonds and hold them untilmaturity?

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