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2) a) Petty Productions Inc. recently issued 30-year $1,000 face value, 12% annual coupon bonds. The market discount rate for this bond is only 7.5%.
2) a) Petty Productions Inc. recently issued 30-year $1,000 face value, 12% annual coupon bonds. The market discount rate for this bond is only 7.5%. What is the current price of this bond? B) If this a callable bond do you expect investors to pay more or less for the bond? Explain your logic.
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