Multiple Choice
Rearden Metal has just issued a callable,$1000 par value,twenty-year,8% coupon bond with semiannual coupon payments.The bond can be called at par in five years or anytime thereafter on a coupon payment date.If the bond is currently trading for $1040.79,then its yield to call is closest to:
A) 3.8%.
B) 7.0%.
C) 7.6%.
D) 8.0%.
Correct Answer:

Verified
Correct Answer:
Verified
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