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Use the following information for Questions 6-10: Table of Interest Rates: Consider the following bond: - Exactly 3 years to maturity - 9.7% coupon rate,
Use the following information for Questions 6-10: Table of Interest Rates: Consider the following bond: - Exactly 3 years to maturity - 9.7% coupon rate, paid annually - \$100 par value - Bond is callable in exactly 1 year for 101.5 and exactly 2 years for 100.5 . Question 6: Suppose that there is zero volatility in interest rates. Restated, suppose that future interest rates equal current market expectations. What is the price of the callable bond? Round your answer to three decimal places. Use the following information for Questions 6-10: Table of Interest Rates: Consider the following bond: - Exactly 3 years to maturity - 9.7% coupon rate, paid annually - \$100 par value - Bond is callable in exactly 1 year for 101.5 and exactly 2 years for 100.5 . Question 6: Suppose that there is zero volatility in interest rates. Restated, suppose that future interest rates equal current market expectations. What is the price of the callable bond? Round your answer to three decimal places
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