Question: At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15, 2017: 5/15/2023 6.500

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

At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15, 2017: 5/15/2023 6.500 106.31250 106.37500 -.31250 5/15/2023 8.250 103.43750 103.50000 -.09375 5/15/2023 12.00 134.78125 134.96875 -.46875 5.28 5.24 5.32 The bond in the middle is callable in February 2018. What is the implied value of the call feature? (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call value

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