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An investor is buying a 10-year callable bond today. The bond has a coupon rate of 6%, paid semiannually. The bond might be called at
An investor is buying a 10-year callable bond today. The bond has a coupon rate of 6%, paid semiannually. The bond might be called at par by the issuer every other coupon payment date, beginning with the second coupon payment date. The investor requires a return of 14% (also compounded semiannually, you should divide it by two), regardless of when the bond is redeemed. What is the maximum price in % of face value, this investor is willing to pay for the bond? Please, type in your answer in percentage points, without decimals or a percentage sign
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