At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury

Question:

At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15, 2014:

The bond in the middle is callable in February 2015. What is the implied value of the call feature? Assume a par value of $1,000.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...