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NEW QUESTION: 2
The required return of an option-free, 10% coupon, semi-annual pay bond with 12 years to maturity is
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Assuming credit quality and other relevant factors are equivalent:
A. the required return of the callable bond is equal to 10.37%
B. the required return of the callable bond is less than 10.37%
C. the required return of the callable bond is greater than 10.37%
Answer: C
Explanation:
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NEW QUESTION: 3
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