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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, 2016 7.15 May 20

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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, 2016 7.15 May 20 n 114.375e 114.43750-,43750 5.41 8.90 May 20111.50000 111.56250 18750 5.37 12.65 May 20147-65625 147.84375 5000045 The bond in the middle is callable in February 2017. 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 Intermedlate calculations. Round your answer to 2 decimal places, e.g. 32.16.) Call value $

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