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R1. ABC Inc. plans to issue a 15-year, 15% annual coupon callable bond. The current yield is 12%. At the end of year 5, the

R1. ABC Inc. plans to issue a 15-year, 15% annual coupon callable bond. The current yield is 12%. At the end of year 5, the yield will be either 6% (40% probability) or 20%. The bond will be called...

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