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Assume that a 30-year semi-annual, 9% $1,000 bond is callable after 15 years at 106% of par value and the discount rate in todays market
Assume that a 30-year semi-annual, 9% $1,000 bond is callable after 15 years at 106% of par value and the discount rate in todays market is 8%. Using the price-to-worst method, what is the value of this bond?
Group of answer choices
d) $1,136
e) $1,105
c) $925
b) $1,249
a) $1,113
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