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Two years ago, Synergy Inc. issued a 15-year callable bond with a $1,000 face value and a 12 percent coupon rate of inte...

Two years ago, Synergy Inc. issued a 15-year callable bond with a $1,000 face value and a 12 percent coupon rate of interest (paid semiannually). The bond cannot be called until five years after issue, at which time the call price will equal $1,120. Currently, the bond is selling for $989.What is the bond's yield to call (YTC).

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A B C 1 Maturity (years) 2 Face Value 15 $1,000 3 Coupon Rate 4 Current price 5 Time to Call 6 Call Price 7 Frequency 12.00%A В C 1 Maturity (years) 2 Face Value 3 Coupon Rate 4 Current price 5 Time to Call 6 Call Price 7 Frequency 15 1000 0.12 989

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