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A company issued 10,000 bonds eight years ago with a par value of $1,000 each. The annual coupon rate is 9% and the bonds are

A company issued 10,000 bonds eight years ago with a par value of $1,000 each. The annual coupon rate is 9% and the bonds are callable after five years. This year the market yield on the companys bond is 7.5%. What would be the annual savings in interest payments of the company should they choose to finance a call through a refunding operation? [A]

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