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AbC Corporations (ABC) issues a bond that pays 10% semi-annual coupon, have a $1,000 face value, and mature in 10 years. If ABC bonds are

AbC Corporations (ABC) issues a bond that pays 10% semi-annual coupon, have a $1,000 face value, and mature in 10 years. If ABC bonds are sold to yield 8%, what is the price of ABC bond at the end of year

2. If ABC issue the same bond (same coupon rate, face value and maturity) with callable feature, would the price of ABC bond be lower or higher? Explain.

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