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At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15, 2017: 5/15/2023 6.500

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At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15, 2017: 5/15/2023 6.500 106.31250 106.37500 -.31250 5/15/2023 8.250 103.43750 103.50000 -.09375 5/15/2023 12.00 134.78125 134.96875 -.46875 5.28 5.24 5.32 The bond in the middle is callable in February 2018. What is the implied value of the call feature? (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call value

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