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A bond currently sells for $1250. The bond pays a $120 annual coupon, has a 15year maturity, and a $1000 parvalue, and they can be called in 5 years at $1050. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC? (Subtract the YTC from the YTM.)

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