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You Are Interested in Purchasing a Newly Issued $1,000 Par

Question 15

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You are interested in purchasing a newly issued $1,000 par, 20-year, 4.80% semiannual coupon bond. While reading the indenture, you see that the bond has five years of call protection, and that the call premium is one interest payment. What is the yield to call for this bond?

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