valuing the call feature consider the


Valuing the Call Feature   Consider the prices of the following three Treasury issues as of February.

1103_What is the implied value of the call feature.png

The bond in the middle is callable in February 2013. What is the implied value of the call feature? (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?)

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Corporate Finance: valuing the call feature consider the
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