Callable bond. Corso Books has just sold a callable bond LOADING... . It is a...
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Finance
Callable
bond.
Corso Books has just sold a callable bond
LOADING...
. It is a thirty-year
monthly
bond with an annual coupon rate
LOADING...
of
6%
and
$5,000
par value. The issuer, however, can call the bond starting at the end of
6
years. If the yield to call
LOADING...
on this bond is
5%
and the call requires Corso Books to pay one year of additional interest at the call
(12
coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date?
What is the bond price if priced with the assumption that the call will be on the first available call date?
$nothing
(Round to the nearest cent.)
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