Question: Question 13 Bond Features Face Value = $1,000 Coupon Rate = 6.00% Maturity in Years = 10 Annual Coupons The bond can be called in

Question 13

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 ?

Group of answer choices

lose $17.37

lose $16.20

lose $16.71

lose $17.21

lose $15.54

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