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what is the yield to maturity for a bond that matures in 15 years, is callable...

what is the yield to maturity for a bond that matures in 15 years, is callable in 6 years ,has a coupon rate of 4.5% and a price of $995 and a call premium of $45?

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Answer #1

The solution to the given question is provided below:

Using excel:

yield to maturity=RATE(15,4.5%*1000,-995,1000)=4.54671%

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