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Suppose you own a bond that pays $75 yearly in couponinterest and that isIikely to be called in two years(becausethe firm hasalready announce that it
- Suppose you own a bond that pays $75 yearly in couponinterest and that isIikely to be called in two years(becausethe firm hasalready announce that it will redeem the issue early). The call price willbe $ 1o5o.What is the price of your bondnow ,in the market,if the appropriate discount rate for asset is 9%
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