Question: I dont know how to solve this Bond Features Face Value = $1,000 Coupon Rate = 6.00% Maturity in Years = 10 Annual Coupons The
Bond Features Face Value = $1,000 Coupon Rate = 6.00% Maturity in Years = 10 Annual Coupons The bond can be called in year 5 The market interest rate in year 5 - 5.00% The call price is equal to $1,060 How much would the company save or lose if it calls the bond in year 5 ? I lose $16.20 lose $17,37 lose $16.71 lose $15.54 lose $17.21
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