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A bond matures in 25 years but is callable in 12 years at 124. The call premium decreases by 1 percent of par per year.
A bond matures in 25 years but is callable in 12 years at 124. The call premium decreases by 1 percent of par per year. If the bond is called in 16 years, how much will you receive?
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
