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Consider the prices of the following three Treasury issues as of February 2 4 , 2 0 2 1 : The bond in the middle
Consider the prices of the following three Treasury issues as of February :
The bond in the middle is callable in February 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?Do not round intermediate calculations.
Round the final answer to decimal places. Omit $ sign in your response.
Call value $
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