What is the bond price is priced with the assumption that


Callable Bond. Corso Books has just sold a callable bond. It is a thirty-year monthly bond with an annual coupon rate of 7% and $5,000 par value. Investors, however, can call the bond starting at the end of 5 years, If the yield to call on this bond is 8% and the call requires Corso Books to pay one year of additional interest at the call of (12 coupon payments), what is the bond price is priced with the assumption that the call will be on the first available call date?

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Finance Basics: What is the bond price is priced with the assumption that
Reference No:- TGS0602011

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