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Haseltine Corp has $1000 callable bond outstanding. The call provision guarantees that the bond won't be called in the first 10 years of its life,
Haseltine Corp has $1000 callable bond outstanding. The call provision guarantees that the bond won't be called in the first 10 years of its life, and it is called there after the bondholder will be compensated with an extra two years interest rate at the 14% coupon rate. The bond is now four years into the 25 year life. The market interest rate is now 7%. What should the bond sell for today?
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