# Question

a. Using the facts given in problem 11, what would be the yield to call if the call can be made in four years at a price of $1,080? Use Formula 12–3 on page 321.

b. Explain why the answer is lower in part a than in problem 11.

c. Given a call value of $1,080 in four years, is it likely that the bond price would actually get to $1,160?

b. Explain why the answer is lower in part a than in problem 11.

c. Given a call value of $1,080 in four years, is it likely that the bond price would actually get to $1,160?

## Answer to relevant Questions

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