Question: It is now January 1 , 2 0 2 6 , and you are considering the purchase of an outstanding bond that was issued on
It is now January and you are considering the purchase of an outstanding bond that was issued on January It has a percent annual coupon and had a year original maturity. It matures on December There were years of call protection until December after which time it can be called at percent of par, or $ Interest rates have fallen since the bond was issued, and it is now selling at percent of par, or $ If you bought this bond, what rate of return would you probably earn, assuming you hold the bonds until they either mature or are called?
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