Question
You own a bond with a coupon rate of 6.2 percent and a yield to call of 7.1 percent. The bond currently sells for $1,082.
You own a bond with a coupon rate of 6.2 percent and a yield to call of 7.1 percent. The bond currently sells for $1,082. If the bond is callable in five years, what is the call premium of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places)
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
