: A company would like to borrow some money but market conditions are such that rates are above the level (in this case, they would have to pay 9 % for a 20-year bond issue) they would like to pay over the next 20 years and above the level they think rates will be at after about 5 or 6 years. They have considered adding a call provision which would allow them to call the debt, after a 5-year no call period, at a 10% call premium. What is the call price that the company is committing to and how would you analyze this option? (Think through the costs and the risks).