Question
A hypothetical $1,000 par 20-year bond is used on January 21, 2013 at a price of 98.515. The issuer can call the bond in whole
A hypothetical $1,000 par 20-year bond is used on January 21, 2013 at a price of 98.515. The issuer can call the bond in whole or in part every January 21, from 2019. Call prices at different call dates are listed below: Year Call Price ($) 2019 102.000 2020 101.655 2021 101.371 2022 101.095 2023 100.824 2024 100.548 2025 100.273 2026 and thereafter 100.000 1. What is the length of the call protection period? 2. What is the call premium (per bond) for the 2022 call date? 3. What type of exercise style does this callable bond illustrate
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Construction Accounting And Financial Management
Authors: Steven J. Peterson
3rd Edition
0132675056, 978-0132675055
