Question: At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2019: 7.25 May 23

At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2019: 7.25 May 23 118.43750 118.50000 .50000 5.43 9.00 May 23 115.56250 115.62500 .25000 5.39 12.75 May 23 149.71875 149.90625 .56250 5.47 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

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