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Question 41

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Use the information for the question(s)below.
Luther Industries has just issued a callable (at 102)ten-year,8% coupon bond with semiannual coupon payments.The bond can be called at 102 in three years or anytime thereafter on a coupon payment date.It has a current price of 99.
-What is the Yield to Maturity (YTM)on this bond?

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N = 20 (10 × 2)
PMT = 40 ($80/...

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