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The bond s indenture indicates that the call provision gives the firm the right to call the bonds at the end of each year beginning
The bonds indenture indicates that the call
provision gives the firm the right to call the bonds at
the end of each year beginning in Year In Year
the bonds may be called at of face value, but
in each of the next years, the call percentage will
decline by Thus, in Year they may be called
at of face value; in Year they may be called
at of face value; and so forth. If the yield curve
is horizontal and interest rates remain at their current
level, when is the latest that investors might expect
the firm to call the bonds? SHOW STEPS FOR FINANCIAL CALCULATOR
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