Callable bonds Consider a bond that is callable at 102. If the current YTC is 7.4 %,

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Callable bonds Consider a bond that is callable at 102.

If the current YTC is 7.4 %, the CR is 6.9 %, and the bond has 14 years left until earliest call. If you believe the bond is going to be called at earliest opportunity, what is the value of this bond to you today?

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