Question: 10 QUESTION 7 Based on your risk assessment, your required rate of return is 9 percent for a callable bond you own. This is a

10 QUESTION 7 Based on your risk assessment, your required rate

10 QUESTION 7 Based on your risk assessment, your required rate of return is 9 percent for a callable bond you own. This is a new bond with 20 years to maturity. It is a $1,000 par value bond paying 10 percent interest annually. The market price of the bond is $950. The bond may be called any time after 3 years and the call premium is $200. Find the yield-to-call. O A. 11.20% B. 12.79% C. 13.64% D. 14.60% E. None of the above

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