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Assume that ABC Corporation issues a 30-year bond on Feb 15th 2019 at a price of 97.195 (as a percentage of par). Each bond has
- Assume that ABC Corporation issues a 30-year bond on Feb 15th 2019 at a price of 97.195 (as a percentage of par). Each bond has a par value of $1,000. The bond is callable at a predetermined price of 103.322 (as a percentage of par) from Feb 15th 2026 at the option of the issuer. What is the call protection period for the bond? What is the call premium per bond?
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