Callable bond. Corso Books has just sold a callable bond. It is a thirty-year monthly bond with an annual coupon rate of 8% and $1,000 par value. The issuer, however, can call the bond starting at the end of years.If the yield to call on this bond is 6% and the call requires Corso Books to pay one year of additional interest at the call (12 coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date? what is the bond price if priced with the assumption that the call will be on the first available call date?

6 years

SP2021 FN 310-QLC Fund of Financial Management Nicholas Carter 01/01/21 Homework: Chapter 6 Homework Score: 0 of 1 pt 90f11com HW Soor2536, 2.75 of 11 pts P6-16 (similar to) 0 Caltable bond. Corso Books has just soldable bond. It is a thirty-year monthly bond with an open of and $1.000 pers. Ther, howevil the band target the end of wine yield to call on this bond is 6% and the call requires Corso Booksto pay you of additional interest the call (12 coupon payment, what is the bordered on the site of the first weal date? What is the bond price is priced with the assumption that the call will be on fint valable calda? (Round to the nearest cent) Enter your answer in the box and then click Check Antwer All parts showing & 7 % 5 8 4 2 0