Multiple Choice
A 6.75 percent coupon bond with 13 years left to maturity can be called in two 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 semiannually and par value is $1,000.
A) 12.14 percent
B) 7.27 percent
C) 14.54 percent
D) 8.29 percent
Correct Answer:

Verified
Correct Answer:
Verified
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