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A 10-year, 12% coupon bond with semiannual payment and a par value of $1,000 may be called in 4 years with a call premium of

A 10-year, 12% coupon bond with semiannual payment and a par value of $1,000 may be called in 4 years with a call premium of 6%. The bond was just issued and sells for $1,100.

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