A 15 year bond can be called at the end of any year from 10...
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Accounting
A 15 year bond can be called at the end of any year from 10 through 14. The bond has a par value of 1000 and an annual coupon rate of 5%. The bond is redeemable at par and can also be called at par. (a) Calculate the price an investor would pay to yield 6%. (b) Calculate the price an investor would pay to yield 4%
ANSWER: 902.88, 1081.11
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