Question: 1 . Ozarks Managed Care Inc. issued some callable bonds 1 8 years ago with 3 0 - year life at their par value of

1. Ozarks Managed Care Inc. issued some callable bonds 18 years ago with 30-year life at their par value of $1,000. These bonds pay 12% coupon rate with annual payment. The firm just announced that these bonds are being called with $80 call premium. A non-callable bond with the same features (time till maturity; coupon rate, and par value) would be worth __________ at 7.5% required rate of rate. Please only input the whole dollar amount and skip the $ sign, e.g.1023 instead of $1023

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!