A 6.5 percent coupon bond with 12 years left to maturity can be called in four years. The call premium is one year of co

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A 6.5 percent coupon bond with 12 years left to maturity can be called in four years. The call premium is one year of co

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A 6.5 percent coupon bond with 12 years left to maturity can becalled in four years. The call premium is one year of couponpayments. It is offered for sale at $1,190.25. What is the yield tocall of the bond? (Assume interest payments are paid semiannuallyand par value is $1,000.) A. 1.48 percent B. 2.96 percent C. 6.5percent D. 7.23 percent
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