Multiple Choice
A 6.75% coupon bond with 13 years left to maturity can be called in 2 years. The call premium is one year of coupon payments. It is offered for sale at $919.75. What is the yield to call of the bond? Assume interest payments are paid semi-annually and par value is $1,000.
A) 12.14%
B) 7.27%
C) 14.54%
D) 8.29%
Correct Answer:
Verified
Correct Answer:
Verified
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