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Company X issued the following fixed and floating rate notes 5 years ago, with these terms: Fixed rate Floating rate Original Maturity 30 year 10

Company X issued the following fixed and floating rate notes 5 years ago, with these terms:

Fixed rate

Floating rate

Original Maturity

30 year

10 year

Current price

94

101

Coupon (current)

9%

8%

Reset rule

NA

LIBOR + 3%, reset 1 time / year

Callable

10 years after issue

5 years after issue

Call price

105

102.50

Sinking fund

None

None

YTM

7.8%

NA

Price range since issued

84-114

97-1033.

3. (Yes / No) Is the call price important for the floater? Why?

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