Suppose you own a bond that pays ($ 75) yearly in coupon interest and that is likely

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Suppose you own a bond that pays \(\$ 75\) yearly in coupon interest and that is likely to be called in two years (because the firm has aiready announced that it will redeem the issue early). The call price will be \(\$ 1,050\). What is the price of your bond now, in the market, if the appropriate discount rate for this asset is \(9 \%\) ?

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Related Book For  answer-question

Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

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