Question
You own a bond with a coupon rate of 7.1 percent and a yield to call of 8 percent. The bond currently sells for $1,099.
You own a bond with a coupon rate of 7.1 percent and a yield to call of 8 percent. The bond currently sells for $1,099. 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.)
Call premium
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
