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At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15,2019 : The bond in

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At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15,2019 : The bond in the middle is callable in February 2020. What is the implied value of the call feature? Assume a par value of $1,000. (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.) At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15,2019 : The bond in the middle is callable in February 2020. What is the implied value of the call feature? Assume a par value of $1,000. (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.)

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