Another option for financing is to call in the outstanding bonds you have issued and obtain a loan with more favorable terms than the bonds you would issue. Presently, the company has a 6% coupon bond that matures in 11 years. The bond pays interest semiannually. What is the market price of a $ 1,000 face value bond if the current rate of interest is 12.9%? How much will it cost the company to call in 1,000 of these bonds? Is it worth pursuing this strategy if your interest rate on a loan is 13%? When you purchase a bond at par your present rate of interest is not changed from the rate of