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XZYY, Inc. currently has an issue of bonds outstanding that will mature in 24 years. The bonds have a face value of $1,000 and a stated annual coupon rate of 20% with semi-annual coupon payments. The bond is currently selling for $857. The bonds may be called in 6 years for 124% of par value. What is the quoted annual yield-to-call for these bonds assuming the company calls the bonds as soon as possible?

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Jamar Ferry
Jamar FerryLv2
28 Sep 2019

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