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When ABC Company originally issued its callable 5.75%, 11-year bond, it was rated AA and priced to sell at par. The bond is callable at

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When ABC Company originally issued its callable 5.75%, 11-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 0.2%. At that time, the credit spread over 11-year Carada bonds was 0.3%. The bond pays interest annually. a. What was the call price at issue? (Round your answer to the nearest cent.) Call price $ Now, 6 years later, the bond rating agencies have raised the bond rating to AAA and the bond's yield to maturity is 5.25%. Equivalent-maturity Canada bonds are yielding 5.15%. b. What is the current call price? (Round your answer to the nearest cent.) Call price $ c. Would ABC Company consider calling the bond now? than the call price. The company (Click to select) Now the current price is (Click to select) consider calling the bonds

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