Question 5 Bond Features Face Value = $1,000 Coupon Rate = 5.00% Maturity in Years...
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Question 5
Bond Features Face Value = $1,000 Coupon Rate = 5.00% Maturity in Years = 10 Annual Coupons The bond can be called in year 6 The market interest rate in year 6 = 3.00% The call price is equal to $1,050 How much would the company save or lose if it calls the bond in year 6 ?
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