Suppose You Have a 15%,25 Year Bond Traded at $975

question 22

Multiple Choice

Suppose you have a 15%,25 year bond traded at $975.If it is callable in 5 years at $1050,what is the bond's yield to call? Interest is paid annually.

• A) 15%
• B) 16.5%
• C) 7.65%
• D) 8.52%
• E) 9.64%

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