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Suppose that 8 years ago a corporation issued a 15 year bond with a coupon rate of 7% and the indenture specifies a make whole
Suppose that 8 years ago a corporation issued a 15 year bond with a coupon rate of 7% and the indenture specifies a make whole call premium of 25 basis points over the yield on a comparable Treasury at the time the call provision is exercised. Assume that the call is excericised immediately after the payment of a coupon. At the time that the issue is called, the yield on a comparable Treasury is 3.15%, what is the make-whole call price per $100 of par value if the issue is called at the end of the eighth year?
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