Corso Books has just sold a callable bond

LOADING...

. It is a thirty-year

quarterlyquarterly

bond with an annual coupon rate

LOADING...

of

1111%

and

$1 comma 0001,000

par value. The issuer, however, can call the bond starting at the end of

55

years. If the yield to call

LOADING...

on this bond is

1010%

and the call requires Corso Books to pay one year of additional interest at the call

(44

coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date?

What is the bond price if priced with the assumption that the call will be on the first available call date?