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er 6) i Saved When ABC Company originally issued its callable 5.35%, 8-year bond, it was rated AA and priced to sell at par.

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er 6) i Saved When ABC Company originally issued its callable 5.35%, 8-year bond, it was rated AA and priced to sell at par. The bond is callable at the price that offers an equivalent yield to a Canada bond plus 0.12%. At that time, the credit spread over 8-year Canada bonds was 0.32%. The bond pays interest annually. a. What was the call price at issue? (Round your answer to the nearest cent.) Call price $ Now, 4 years later, the bond rating agencies have raised the bond rating to AAA and the bond's yield to maturity is 4.85%. Equivalent- maturity Canada bonds are yielding 4.75%. b. What is the current call price? (Round your answer to the nearest cent.) Call price $ c. Would ABC Company consider calling the bond now? Now the current price is greater can than the call price. The company consider calling the bonds.

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