A. Look at Table 24.1. Suppose that AMAT decides to

a. Look at Table 24.1. Suppose that AMAT decides to call the bond one year before it is due to expire. The interest rate on one-year Treasury bonds is 2%. What price must AMAT pay to call the bonds?

b. Now suppose that the interest rate on Treasury bonds is 10%. What price must AMAT pay to call its bonds?

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