Question: Save Homework: Problem Set 3 Score: 0 of 1 pt P6-16 (similar to) 11 of 13 (2 complete) HW Score: 15.38%, 2 of 13 pts
Save Homework: Problem Set 3 Score: 0 of 1 pt P6-16 (similar to) 11 of 13 (2 complete) HW Score: 15.38%, 2 of 13 pts Question Help Callable bond. Corso Books has just sold a callable bond. It is a thirty-year monthly bond with an annual coupon rate of 8% and $5,000 par value. The issuer, however, can call the bond starting at the end of 10 years. If the yield to cal on this bond is 6% and the call requires Corso Books to pay one year of additional interest at the call (12 coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date? What is the bond price if priced with the assumption that the call will be on the first available call dato? $ (Round to the nearest cont.) Enter your answer in the answer box and then click Check
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