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4 Unanswered A callable bond has 10 years to maturity and 2 years to call. The bond is callable at 105% of par and has a coup
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Answer #1

Using financial calculator
Input:

FV = 105%*1000 = 1050

N = 2

PMT=5%*1000 = 50

PV = -1100

Solve for I/Y as 2.3

Hence YTC = 2.3

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4 Unanswered A callable bond has 10 years to maturity and 2 years to call. The...
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