Six years ago the templeton company issued 21-year bonds with an 13%

Six years ago the templeton company issued 21-year bonds with an 13% annual coupon rate at their $1,000 par value. the bonds had an 8% call premium, with 5 years of call protection. today templeton called the bonds. compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. round your answer to two decimal places. % why the investor should or should not be happy that templeton called them. since the bonds have been called, interest rates must have risen sufficiently such that the ytc is greater than the ytm. if investors wish to reinvest their interest receipts, they can now do so at higher interest rates.

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