Multiple Choice
Suppose you have a 12 percent, 20-year bond traded at $850. If it is callable in 5 years at $1,100, what is the bond's yield to call? Interest is paid semiannually.
A) 8 percent
B) 9.0 percent
C) 18.0 percent
D) 9.4 percent
E) 16.5 percent
Correct Answer:
Verified
Correct Answer:
Verified
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