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3 0 ) Suppose five years ago, a corporation issued a 2 0 - year bond ( $ 1 0 0 par value ) with
Suppose five years ago, a corporation issued a year bond $ par value with a
coupon rate of and the indenture specifies a makewhole call premium of basis points
over the yield on a comparable Treasury at the time the provision is exercised. Suppose the call
is exercised immediately after a coupon is paid. Assume the yield for a comparable year
Treasury at the time the call is exercised at What is the makewhole call price per $ of
par value if the issue is called at the end of the fifth year?
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