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Question 16 A 3.2% corporate coupon bond is callable in 18 years with a call premium of 1 year of coupon payments and is currently
Question 16
"A 3.2% corporate coupon bond is callable in 18 years with a call premium of 1 year of coupon payments and is currently offered for sale at $1,039.90; Assuming a par value of $1,000 and semi-annual compounding, what is the price paid to the bondholder if the issuer calls the bond?"
"$1,039.90 " | ||
"$1,608.00 " | ||
"$1,647.90 " | ||
"$1,032.00 " | ||
"$1,059.00 " | ||
$968.00 | ||
"$1,071.90 " |
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