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Cochran's Furniture Outlet Is Issuing 25-Year,9 Percent Callable Bonds

Question 67

Multiple Choice

Cochran's Furniture Outlet is issuing 25-year,9 percent callable bonds.These bonds are callable in 4 years with a call premium of $45.The bonds are being issued at par and pay interest semi-annually.What is the yield to call?


A) 9.94 percent
B) 10.72 percent
C) 11.00 percent
D) 11.47 percent
E) 12.08 percent

Correct Answer:

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