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When ABC Company originally issued its callable 5.4%,9-year bond, it was rated AA and priced to sell at par. The bond is callable at the

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When ABC Company originally issued its callable 5.4%,9-year bond, it was rated AA and priced to sell at par. The bond is callable at the price that offers an equivalent yield to a Canada bond plus 0.13%. At that time, the credit spread over 9 -year Canada bonds was 0.33%. The bond pays interest annually. a. What was the call price at issue? (Round your answer to the nearest cent.) Now, 5 years later, the bond rating agencies have raised the bond rating to AAA and the bond's yield to maturity is 4.9%. Equivalent-maturity Canada bonds are ylelding 4.8%. b. What is the current call price? (Round your answer to the nearest cent.) c. Would ABC Company consider calling the bond now? Now the current price is than the call price. The company consider calling the bonds

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