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Hazeltine Corp has a callable bond outstanding. The call provision guarantees that the bond won't be called in the first ten years of its life,
Hazeltine Corp has a callable bond outstanding. The call provision guarantees that the bond won't be called in the first ten years of its life, and if it is called thereafter the bondholder will be compensated with an extra two year's interest at the 14% coupon rate (the bond is a $1000 par value). The bond is now four years into its 25 year life. The market interest rate is now 7%, so it is likely that the bond will be called as soon as the contract allows. What should the bond sell for today
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