Solution-Calculate the yield-to-call

Calculate the yield-to-call

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Reference no: EM131061112

McCue Inc.'s bonds currently sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050.

Calculate the yield-to-call (YTC) for this bond.

A. 7.35%
B. 7.02%
C. 6.81%
D. 6.35%

Reference no: EM131061112

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Calculate the yield-to-call

Reference no: EM131061112

Reference no: EM131061112

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