Consider the prices in the following three Treasury issues as of May 15, 2007: The bond in
Question:
Consider the prices in the following three Treasury issues as of May 15, 2007:
The bond in the middle is callable in February 2008. What is the implied value of the call feature?
Transcribed Image Text:
6.500 May 13n 8.250 May 13 2.000 May 13 106:10 1001:14 134:25 106:12 103:16 134:31 -13 3 -15 5.28 5.24 5.32
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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