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A 5.5 percent semi-annual coupon, make-whole bond has a face value of $1,000 and maturity of 10 years. The bond's indenture indicates the appropriate discount
A 5.5 percent semi-annual coupon, make-whole bond has a face value of $1,000 and maturity of 10 years. The bond's indenture indicates the appropriate discount rate is the YTM on a 10-year a Treasury bond plus a premium of 1%. The 10-year Treasury bond yield is 2%. Assuming the bond is called, what price will the holders receive?
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