Question: The THY corporation issues a callable bond with a call price of 1 4 2 0 $ and a face value of 1 0 0

The THY corporation issues a callable bond with a call price of 1420$ and a face value of 1000$. A coupon rate equals to 10%. The bond matures in 8 years, but callable anytime after 4 years. The bond was called back in year 5.Assuming the rate of return is 14% determine if the call price is the rational price? Can you elborate the solution in process

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