Question
A 4.30% coupon callable bond maturing in 15 years is trading at par. The yield to call is 5%. The next call date is in
A 4.30% coupon callable bond maturing in 15 years is trading at par. The yield to call is 5%. The next call date is in 1 year at the call price of $100.50. What is the callable bond's call option premium? Round to 2 decimal places.
THE ANSWER IS NOT .69 OR .70 PLEASE HELP ME AND GIVE A THOROUGH EXPLANATION AS TO WHY
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
