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...a 8-year, 6%, $100 par bond selling for $104.50, if the first call date is in 3 years with a call price of $102?

With Excel Rate function, Nper=6, PV=-104.5, PMT = 6/2 = 3.5, FV=102, rate=2.5%. Annualize it and one gets 5%.

*Category: C++ Quant > Debt > Valuation*

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