Twelve years ago you purchased a 30 year bond with a call


Twelve years ago you purchased a 30 year bond with a call provision. The corporation may call the bond any time after 15 years by paying one year’s interest as a penalty. When you purchased the bond its coupon rate was 20% (paid semi annually), current bonds of similar risk pay 10% interest and interest rates are expected to remain low. It looks like the corporation will call the bond. What is the value of your bond today?

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Financial Management: Twelve years ago you purchased a 30 year bond with a call
Reference No:- TGS01084553

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