Requireda bond matures in 25 years but is callable in 9, Ask an Expert

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Required:

A bond matures in 25 years, but is callable in 9 years at 125. The call premium decreases by 3 percent of par per year. If the bond is called in 15 years,

Required:

Question: How much will you receive as a percentage of par?

Note: Show all workings.

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Category:- Basic Finance
Reference No.:- M91147788

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