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A firm has an investment - grade bond issue outstanding that pays $ 3 5 semiannual interest payments. The bonds sell at par and are

A firm has an investment-grade bond issue outstanding that pays $35 semiannual interest payments. The bonds sell at par and are callable at a price equal to the present value of all future interest and principal payments discounted at a rate equal to the comparable Treasury rate plus .50 percent. Which one of the following correctly describes this bond?

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