Question: A 10 year callable bond with a 6% coupon currently has 7 years to maturity and 2 years to call (call can be made at

A 10 year callable bond with a 6% coupon currently has 7 years to maturity and 2 years to call (call can be made at the end of a year immediately after the coupon is paid). Market rates are 4%.

What is the current market price based on yield to maturity?

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