Castle's Furniture Outlet is issuing 20-year,8 percent callable bonds.These bonds are callable in 5 years with a call premium of $40.The bonds are being issued at par and pay interest semi-annually.What is the yield to call?
A) 7.94 percent
B) 8.66 percent
C) 9.00 percent
D) 9.47 percent
E) 10.08 percent
Correct Answer:
Verified
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