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QUESTION 17 Burns Power’s $1000 par value, semi-annual coupon bonds currently have a yield to maturity...

QUESTION 17

  1. Burns Power’s $1000 par value, semi-annual coupon bonds currently have a yield to maturity of 5.6%. These bonds have a 6.8% annual coupon rate and mature in 13 years. Also, these bonds could be called in 3 years at a price of $1045.
    What is the yield to call for these bonds?

    a.

    5.60%
    b.

    6.80%
    c.

    4.98%
    d.

    4.28%
    e.

    4.19%
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