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Question
Cochran's Furniture Outlet is issuing 25-year, 9 percent callable bonds. These bonds are callable in 4 years with a call premium of $45. The bonds are being issued at par and pay interest semi-annually. What is the yield to call?A. 9.94 percent
B. 10.72 percent
C. 11.00 percent
D. 11.47 percent
E. 12.08 percent
Answer
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