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A Yield to Call Calculation

Question 8

Multiple Choice

A yield to call calculation:


A) is best used when the bond is trading at par.
B) is the same as the YTM but uses the last period in which the bond can be called prior to maturity.
C) is best used for high coupon bonds trading at a premium.
D) is only applicable to bonds that have already been called for redemption.

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