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You own a callable bond with 6 years left to maturity. It has a face value of $1000. It pays semiannually, has a 6.3% yield
You own a callable bond with 6 years left to maturity. It has a face value of $1000. It pays semiannually, has a 6.3% yield and a 5.7% coupon rate. The call premium is $20. Calculate how much the bond issuer will make if these bonds were called in.
$49.60 | ||
$20 | ||
$49.23 | ||
$231.57 | ||
They wouldnt call the bonds in. |
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