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A 10-year 12% $1000 par value bond that pays a semi-annual coupon, which is callable in 4 years. This bond also exhibits a yield to
A 10-year 12% $1000 par value bond that pays a semi-annual coupon, which is callable in 4 years. This bond also exhibits a yield to call of 6.5% with a call price of $1,090. What is the issuance price of this bond? (Hint: The call price is the offer price from the issuer to recall the bond at the end of 4 years. Show work
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