A company issues a 25-year $7000 bond, redeemable at 100 with bond interest at j12...
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Accounting
A company issues a 25-year $7000 bond, redeemable at 100 with bond interest at j12 = 8%. The bond is callable at the end of 15 years for $5735, at the end of 20 years for $7285 or at the end of 10 years for $8370. Determine the price to guarantee the investor a yield of j12 = 11%.
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