A bond currently sells for $1,250. It pays a $110 annual coupon and has a 20-year maturity,
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A bond currently sells for $1,250. It pays a $110 annual coupon and has a 20-year maturity, but it can be called in 5 years at $1,110.
What are its YTM and its YTC? (8.38%, 6.85%) Is the bond likely to be called if interest rates don’t change?
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Related Book For 
Intermediate Financial Management
ISBN: 9781337395083
13th Edition
Authors: Eugene F. Brigham, Phillip R. Daves
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