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You own a bond with a coupon rate of 6.4 percent and a yield to call of 7.3 percent. The bond currently sells for $1,087.
You own a bond with a coupon rate of 6.4 percent and a yield to call of 7.3 percent. The bond currently sells for $1,087. If the bond is callable in five years, what is the call premium of the bond?
answer is not $180.89
answer is also not $175.81
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