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Williams Corp. 7% bonds mature is 5 years and are priced to yield 4%. These bonds can be called in 2 years at a 5%

Williams Corp. 7% bonds mature is 5 years and are priced to yield 4%. These bonds can be called in 2 years at a 5% call premium. Find the intrinsic value of these bonds.

a)

1175.76

b)

1134.74

c)

1133.55

d)

1174.65

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