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Question 5 10 pts Estimate the yield to call of a bond that is $1,000 par, semi-annual coupon payments, 25 years to maturity,
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Answer #1

Yield to call is calculated using the RATE function as follows:-

=RATE(nper,pmt,pv,fv)

=RATE(7*2,10%/2*1000,-1200,112%*1000)*2

=7.59%

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