Should the investory be happy calling the bond

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Reference no: EM13720740

Yield to Call: Five yrs ago, company A, issued 20 yrs bonds with a 12% annual coupon rate at their $1,000 par value. The bonds had 5 yrs of call protection and an 8% call premium. Yesterday, company A called the bonds. What is the realized rate of return? Should the investory be happy calling the bond?

Reference no: EM13720740

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