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P6-16 (similar to) Question Help Callable bond Corso Books has just sold a sa a e on it is a thirty year monthly bond with
P6-16 (similar to) Question Help Callable bond Corso Books has just sold a sa a e on it is a thirty year monthly bond with an annual guan a e of 896 and $1,000 par value The issuer, however can call te bond starting at the end of 6 years if the yea oca! on this bond is 5% and the cal requres corso Books to pay one year of additional interest at the call (12 coupon payments). what is the bond price if priced with the assumption hat 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)
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