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2. Award: 7.20 points A 5.4 percent corporate coupon bond is callable in 10 years for a call premium of one year of coupons payments.

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2. Award: 7.20 points A 5.4 percent corporate coupon bond is callable in 10 years for a call premium of one year of coupons payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond? Amount paid

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