Calculate the approximate yield

Reference no: EM1338728

Assume you have purchased a 25 year, 9%, $1000 par callable bond with 19 years remaining until maturity and 4 years until the first call. If the call price is equal to par plus one year's interest and the market price is $1,050, what is the appropriate approximate yield, assuming annual interest payments?

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Reference no: EM1338728

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