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Question
Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,050. What is the bond's nominal yield to call?a. 5.01%
b. 5.27%
c. 5.54%
d. 5.81%
e. 6.10%
Answer
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