The market yield on a fifteen-year 7.5% bond is 6.5%.The bond makes semi-annual coupon payments and is callable in five years at a call price of $1,075.
a)What is the current bond price based on the market yield?
b)What is the bond's yield to call?
c)Is this bond likely to be called? Explain.

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The Answer of The market yield on a fifteen-year 7.5% bond is 6.5%.The bond makes semi-annual coupon payments and is callable in five years at a call price of $1,075.
a)What is the current bond price based on the market yield?
b)What is the bond's yield to call?
c)Is this bond likely to be called? Explain.

The Market Yield on a Fifteen-Year 7