Question: A 7 . 2 5 percent coupon bond with 2 5 years left to maturity can be called in five years. The call premium is

A 7.25 percent coupon bond with 25 years left to maturity can be called in five years. The call premium is one year of coupon payments. It is offered for sale at $1,066.24. What is the yield to call of the bond? (Assume that interest payments are paid semiannually and par value is $1,000.
Multiple Choice
6.90 percent
3.45 percent
3.51 percent
3.41 percent
 A 7.25 percent coupon bond with 25 years left to maturity

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