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Assume that a 10-year semi-annual, 9% bond is callable after 5 years at 105% of par value and the discount rate in today's market is
Assume that a 10-year semi-annual, 9% bond is callable after 5 years at 105% of par value and the discount rate in today's market is 5%.Using the price-to-worst method, what is the value of this bond?
$1,000
$1,149
$1,214
$1,223
$1,010
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