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Use the bond term's below to answer the question Maturity 6 years Coupon Rate 5% Face value $1,000 Annual Coupons The bond is callable in
Use the bond term's below to answer the question Maturity 6 years Coupon Rate 5% Face value $1,000 Annual Coupons The bond is callable in year 4 The call price is $1,050 The interest rate in period 4 is 2.50% If the firm calls back the bond, how much does the firm save or lose?
$1.73
$1.81
-$1.73
-$1.81
-$1.91
$1.91
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