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QUESTION
A 7-year, $1,000 par bond has an 8% annual coupon and is currently yielding 7. The bond can be called in 2 years at a call price of $1,010.
A 7-year, $1,000 par bond has an 8% annual coupon and is currently yielding 7.5%. The bond canbe called in 2 years at a call price of $1,010. What is the bond yielding, assuming it will be called(known as the yield to call)?
