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Consider a 20-year callable bond carries a make-whole call provision. Assume the bond with par $1,000 pays 5.25% coupon semiannually. The bond will be called

Consider a 20-year callable bond carries a make-whole call provision. Assume the bond with par $1,000 pays 5.25% coupon semiannually. The bond will be called in year 6 and the make-whole rate is the yield of the comparable 15-year Treasury note plus 25 basis points. If the 15-year T-note rate on the call date is 4.15%, what is the make-whole price of the bond?

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