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Consider the prices in the following three Treasury issues as of May 15, 2011: 6.950 May 17 n 106:19 106:21 ? 10 5.37 8.700 May

Consider the prices in the following three Treasury issues as of May 15, 2011:
6.950 May 17 n 106:19 106:21 ? 10 5.37
8.700 May 17 103:23 103:25 ? 2 5.33
12.450 May 17 143:28 143:34 ? 12 5.41

The bond in the middle is callable in February 2012. What is the implied value of the call feature? (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?) (Round your answer to the nearest whole dollar amount and round your final answer to 2 decimal places. (e.g., 32.16))

Call Value: $ ?

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