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A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 9%. However,
| A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 9%. However, the bond is callable at the end of 10 years at $1100, and at the end of 15 years at $1040. What is the price of the bond if the investor's yield (the "yield-to-worst") is 7.5%? |
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Business Statistics For Contemporary Decision Making
Authors: Ken Black
9th edition
978-1-119-3208, 9781119334781, 1119334780, 1119320895, 978-1119320890
