Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:What is the yield to call of a 20-year to maturity bond that pays a coupon rate of 6.54 percent per year, has a
$1,000 par value, and is currently priced at $1,104? The bond can be called back in 7 years at a call price
$1,056. Assume annual coupon payments.
Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
You should use Excel or financial calculator.
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