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A bond has a face value of $1000 and pays an annual coupon of $95. The bonds mature in exactly 5 years from today. Given

A bond has a face value of $1000 and pays an annual coupon of $95. The bonds mature in exactly 5 years from today. Given that the market interest rate on similar bonds is 9% the bond is callable at the earliest tomorrow at the car price of $1010. This concludes that the issuer will call the bond back tomorrow at $1010.
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