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Sadik Inc'S Bonds Currently Sell for $1,280 and Have a Par

Question 52

Multiple Choice

Sadik Inc.'s bonds currently sell for $1,280 and have a par value of
$1,000. They pay a $135 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC) ?


A) 6.39%
B) 6.72%
C) 7.08%
D) 7.45%
E) 7.82%

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