Question: At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15, 2014: The bond

At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15, 2014:

At one point, certain U.S. Treasury bonds were callable. Consider

The bond in the middle is callable in February 2015. What is the implied value of the call feature? Assume a par value of $1,000.

5/15/2020 5/15/2020 5/15/2020 6.500 106.31250 8.250 2.000 134.78125 106.37500 103.50000 134.96875 312505.28 5.24 5.32 .09375 46875 103.43750

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