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UF issued a 20-year bond that pays a semi-annual coupon of $32.00, has a par value of $1,000, and a nominal annual yield-to-maturity of
UF issued a 20-year bond that pays a semi-annual coupon of $32.00, has a par value of $1,000, and a nominal annual yield-to-maturity of 7.508 percent. This bond can be called in 5 years, and the nominal annual yield-to-call is 10.15 percent. Determine the call premium for this bond.
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To determine the call premium we need to calculate the present value of the bonds cash flows under b...
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
