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Corso Books has just sold a callable bondLOADING.... It is a thirty-year quarterly bond with an annual coupon rateLOADING... of 8% and $5 comma 000
Corso Books has just sold a callable bondLOADING.... It is a thirty-year quarterly bond with an annual coupon rateLOADING... of 8% and $5 comma 000 par value. The issuer, however, can call the bond starting at the end of 5 years. If the yield to callLOADING... on this bond is 10% and the call requires Corso Books to pay one year of additional interest at the call (4 coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date?
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