Question: At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2022: 6.80 May 26

At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of May 15, 2022:

6.80	May 26	118.50000	118.56250	.46875	5.34
8.55	May 26	115.62500	115.68750	.21875	5.30
12.30	May 26	140.78125	140.96875	.53125	5.38

The bond in the middle is callable in February 2023. 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?)

Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

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