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A firm’s bonds have a maturity of 19 years with a $1,000 face value, a 7...

A firm’s bonds have a maturity of 19 years with a $1,000 face value, a 7 percent semiannual coupon, are callable in 5 years at $1,090, and currently sell at a price of $1,150. What is their yield to call (YTC)?

a.

5.16%
b.

5.70%
c.

5.94%
d.

7.00%
e.

3.69%

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Expert Solution

jeff jeffy answered 3 years ago
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