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A 10% coupon bond, annual coupon payments, 10 years to maturity is callable in 3 years . The bond is selling today for $974.632 and
A 10% coupon bond, annual coupon payments, 10 years to maturity is callable in 3 years. The bond is selling today for $974.632 and the yield to call is 14%, what is the call price? (Assume that the bond is called at the end of T=3).
a) 990
b) 1,000
c) 1,100
d) 1,200
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