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Consider the prices of the following two corporate bonds issued by the same company: Issue date Coupon rate Maturity Actual Price YTM Nov-16 4% Nov-21

Consider the prices of the following two corporate bonds issued by the same company: Issue date Coupon rate Maturity Actual Price YTM Nov-16 4% Nov-21 107,6 2,00% Nov-11 8% Nov-21 112,6 4,75% Actual price is defined as percentage of nominal value YTM Yield-to-maturity

The second bond (issued in November 2011) is callable, at nominal value, in November 2019. What is the implied value of the call feature?

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