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Homework: Problem Set 3 Save Score: 0 of 1 pt 11 of 13 (10 complete) HW Score: 58.97%, 7.67 of 13 pts P6-16 (similar to)
Homework: Problem Set 3 Save Score: 0 of 1 pt 11 of 13 (10 complete) HW Score: 58.97%, 7.67 of 13 pts P6-16 (similar to) Question Help Callable bond. Corso Books has just sold a callable bond. It is a thirty-year quarterly bond with an annual coupon rate of 9% and $5,000 par value. The issuer, however, can call the bond starting at the end of 10 years. If the yield to call on this bond is 11% and the call requires Corso Books to pay one year of additional interest at the call (4 coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date? What is the bond price if priced with the assumption that the call will be on the first available call date? $ (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check
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