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You own a bond with a coupon rate of 6.6 percent and a yield to call...

You own a bond with a coupon rate of 6.6 percent and a yield to call of 7.5 percent. The bond currently sells for $1,092. If the bond is callable in five years, what is the call premium of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS NOTHING IS MENTIONED, I HAVE CALCULATED CALL PREMIUM IN $ AND IN %. THANK YOU

AS NOTHING IS MENTIONED, WE ASSUME THAT IT IS ANNUAL COUPON BOND.

jeff jeffy answered 1 year ago
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