Question: 17. If the bond in the previous question is also callable in two years at a call price of $896.914, the yield to call on

 17. If the bond in the previous question is also callable
in two years at a call price of $896.914, the yield to

17. If the bond in the previous question is also callable in two years at a call price of $896.914, the yield to call on this bond is (in APR). 1) 5% 2) 7% 3) 8% 4) 9% A coupon bond which pays interest of $40 annually, has a par value of $1,000, matures in 5 years, and is selling today at a $159.71 discount from par value. The actual yield to maturity on this bond is __ (in APR). 1) 5% 2) 6% 3) 7% 4) 8% 17. If the bond in the previous question is also callable in two years at a call price of $896.914, the yield to call on this bond is (in APR). 1) 5% 2) 7% 3) 8% 4) 9%

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