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Please solve without using Excel. I am using a financial calculator so I would appreciate knowing how to put into the calculator. Thank you! Callable
Please solve without using Excel. I am using a financial calculator so I would appreciate knowing how to put into the calculator. Thank you!
Callable bond. Corso Books has just sold a callable bond. It is a thirty-year monthly bond with an annual coupon rate of 12% and $5,000 par value. The issuer, however, can call the bond starting at the end of 6 years. If th yield to call on this bond is 6% and the call requires 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 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.)Step by Step Solution
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