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Callable bond. Corso Books has just sold a callable bond. It is a thirty - year semiannual bond with an annual coupon rate of 8
Callable bond. Corso Books has just sold a callable bond. It is a thirtyyear semiannual bond with an annual coupon rate of and $ par value. The issuer, however, can call the bond starting
at the end of years. If the yield to call on this bond is and the call requires Corso Books to pay one year of additional interest at the call 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?
$ Round to the nearest cent.
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