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hey! can someone look through this before Sunday Feb 6? 40. Canada Call. When ABC Company originally issued its callable 5.5%, 10-year bond, it was

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hey! can someone look through this before Sunday Feb 6?

40. Canada Call. When ABC Company originally issued its callable 5.5%, 10-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 .15%. At that time, the credit spread over 10-year Canada bonds was -25%. The bond pays interest annually. a. What was the call price at issue? L02) Now, 5 years later, the bond rating agencies have raised the bond rating to AAA and the bond's yield to maturity is 5%. Equivalent-maturity Canada bonds are yielding 4.9%. b. What is the current call price? (L02,105) c. Would ABC Company consider calling the bond now? (L02, L05)

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