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Group 35 Assume that a 25-year bond with a face value of $1,000 has an 8% coupon rate and is compounded semi-annually. The bond is

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Group 35 Assume that a 25-year bond with a face value of $1,000 has an 8% coupon rate and is compounded semi-annually. The bond is callable after 15 years at 108% of par value and the market rate in today's market is 7%. What is the value of the bond? (rounded to the nearest number) A. $1,117 B. $1,240 C. $1,120 D. $954 E. $978

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