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A 30-year bond pays interest semiannually, has a par value of $1,000, a coupon rate of 15%, and has 20 years until maturity. The bond

A 30-year bond pays interest semiannually, has a par value of $1,000, a coupon rate of 15%, and has 20 years until maturity. The bond has a feature that allows the bond to be called after 15 years, with a call premium of 1.5 years of interest. Bonds of similar risk are discounted at a market rate of 5%.

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