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Business, 12.12.2020 17:10 maysahdabest

Again, Inc. bonds have a par value of $1,000, a 25 year maturity, and an annual coupon rate of 8.0% with annual coupon payments. The bonds are currently selling for $868. The bonds may be called in 6 years for 108.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible? a) 9.39%
b) 12.21%
c) 13.42%
d) 10.13%
e) 8.30%

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