Question: consider a 2 0 - year bond paying 8 . 5 % ( semi - annually ) and selling for US$ 8 5 0 .

consider a 20-year bond paying 8.5%(semi-annually) and selling for US$850.42 per US$1,000 par value. This bond is callable in 5 years at US$1,025. Find, by using either Goal Seek or the IRR function, the semiannual yield-to-call (YTC), the annual YTC and the effective yield.

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