Question: Consider the prices in the following three Treasury issues as of May 15, 2011: The bond in the middle is callable in February 2012. What

Consider the prices in the following three Treasury issues as of May 15, 2011:

Consider the prices in the following three Treasury issues as


The bond in the middle is callable in February 2012. What is the implied value of the call feature?

6.500 May 17n 8.250 May 17 12.000 May 17 106:10 103:14 134:25 106:12 13 103:16 134:31 -15 5.28 5.24 5.32 3

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