Question: At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2019: 7.15 May

At one point, some Treasury bonds were callable. Consider the prices on

At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2019: 7.15 May 23 114.37500 114.43750 -.43750 5.41 8.90 May 23 111.50000 111.56250 12.65 May 23 147.65625 147.84375 - 18750 -.50000 5.37 5.45 The bond in the middle is callable in February 2020. What is the implied value of the call feature? Assume a par value of $1,000. (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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