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ou just bought a newly issued bond with a 4% coupon and a 5 year term.  If the indenture states that the bond is callable two years from now for a price of $1,050, what is your yield to call?   Question 24 options:   5.08%   4.42%   8.81%   6.38%

ou just bought a newly issued bond with a 4% coupon and a 5 year term.  If the indenture states that the bond is callable two years from now for a price of $1,050, what is your yield to call?   Question 24 options:   5.08%   4.42%   8.81%   6.38%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You just bought a newly issued bond with a 4% coupon and a 5 year term.  If the indenture states that the bond is callable two years from now for a price of $1,050, what is your yield to call?

 

Question 24 options:

 

5.08%
 

4.42%
 

8.81%
 

6.38%
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