Consider a bond with a 6.1 percent coupon rate and a yield, Ask an Expert

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Consider a bond with a 6.1 percent coupon rate and a yield to call of 7 percent. The bond currently sells for $1,103. If the bond is callable in 5 years, what is the call premium of the bond? (Do not round intermediate calculations. Round your final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

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