The following information relates A bond with five years remaining until maturity is currently trading for 101
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The following information relates
A bond with five years remaining until maturity is currently trading for 101 per 100 of par value. The bond offers a 6% coupon rate with interest paid semiannually. The bond is first callable in three years and is callable after that date on coupon dates according to the following schedule:
The bond’s annual yield-to-second-call is closest to:
A. 2.97%.
B. 5.72%.
C. 5.94%.
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