A callable bond with a $1,000 par value and a 7.5% coupon rate pays interest...
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Finance
A callable bond with a $1,000 par value and a 7.5% coupon rate pays interest semiannually. The bond matures in 20 years but is callable in 5 years at a price of $1,100. Today, the bond sells for $1,055.84. What is this bonds yield to call expressed as a bond equivalent yield?
3.49%
3.90%
6.18%
6.98%
7.80%
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