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(15%) Jane purchased a 25 -year Raytheon callable bond 10 years ago with a coupon rate of 12%. The bond has a face value of

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(15\%) Jane purchased a 25 -year Raytheon callable bond 10 years ago with a coupon rate of 12%. The bond has a face value of $1,000 and has a call protection period of 15 years from the date of issue. The bond will also pay a call premium of one year's interest if the bond is called. Today similar bonds without the call provision have a coupon rate of 8%. Assume the bond is sure to be called. a. What is the price of the bond today? b. By how much has the call feature added to (or deducted from) the value of the bond

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