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Suppose Company X issued a 10-year bond issue with a semi-annual coupon of 4%. The issue becomes callable in two years and may be called

Suppose Company X issued a 10-year bond issue with a semi-annual coupon of 4%. The issue becomes callable in two years and may be called each year thereafter, and the first call price is 104. Suppose you are sure that the bond will be called on the first call date in two years. The relevant market interest rate is 6.5% / year. How much would you be willing to pay today for this bond?

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