Multiple Choice
A 5.5% coupon municipal bond has 16 years left to maturity and has a price quote of 92.55. The bond can be called in 9 years. The call premium is one year of coupon payments. Compute the bond's current yield. Assume interest payments are paid semi-annually and a par value of $5,000.
A) 5.94%
B) 11.89%
C) 12.19%
D) 13.14%
Correct Answer:
Verified
Correct Answer:
Verified
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