A 9% semi-annual RXP callable bond is selling for $1,090 and has 15 years to maturity. The bond has five years of call protection and is callable at 105% of par value. What is the yield to maturity on the bond? What is the bond's yield to first call (YTFC)? What measure should an investor use to represent the interest rate risk of the RXP bond?

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The Answer of A 9% semi-annual RXP callable bond is selling for $1,090 and has 15 years to maturity. The bond has five years of call protection and is callable at 105% of par value. What is the yield to maturity on the bond? What is the bond's yield to first call (YTFC)? What measure should an investor use to represent the interest rate risk of the RXP bond?

A 9% Semi-Annual RXP Callable Bond Is Selling for $1,090