Question: 5. (8 points) A callable bond matures in 10 years, but can be called-in at the end of year 6 or year 8. The bold

5. (8 points) A callable bond matures in 10 years, but can be called-in at the end of year 6 or year 8. The bold is sold at a premium. There is no call premium. In order to plan their finances the purchaser is in most interested in the worst possible yield. What call date would result in the worst yield for the bond purchaser? (A) End of year 6 (B) End of year 8 (C) End of year 10 (D) All the same (E) Not enough information given

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