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You own a bond with a coupon rate of 7 . 8 percent and a yield to call of 8 . 7 percent. The bond

You own a bond with a coupon rate of

7.8

percent and a yield to call of

8.7

percent. The bond currently sells for $

1, 102 .

If the bond is

callable in five years, what is the call premium of the bond?

Note: Do not round intermediate calculations. Round your answer to

2

decimal places.

Call premium

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