Question: IBM has just issued a callable (at par) 5 year, 8% coupon bond with annual coupon payments. The bond can be called at par in

IBM has just issued a callable (at par) 5 year, 8% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $103 per $100 face value, implying a yield to maturity of 7.26%.

What is the bond's yield to call?

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