Question: Please answer the question circled in blue. The question is asking to answer what the optimal call policy is assuming that the firm tries to

Please answer the question circled in blue. The question is asking to answer what the optimal call policy is assuming that the firm tries to maximize shareholder wealth? Additionally, it asks what is the value of the callable bond?

The question circled in blue is a

2

part question. Please answer both parts.

Please answer the question circled in blue. The question is asking

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