Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A 5.5 percent corporate coupon bond
is callable in four years for a call
premium of one year of coupon
payments. Assuming a par value of
$1,000, what is the price paid to the
bondholder if the issuer calls the bond?
(Assume annual interest payments.)
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Transcribed Image Text:A 5.5 percent corporate coupon bond is callable in four years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond? (Assume annual interest payments.)
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