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Kempton Enterprises has bonds outstanding with a $ 1 , 0 0 0 face value and 1 0 years left until maturity. They have a

Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have a 10% annual coupon payment, and their current price is $1,195. The bonds may be called in 5 years at 109% of face value (Call price = $1,090).

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