What is the current bond price what is the current call


Canada Call Price. A 7% corporate bond with 6 years to maturity has a Canada call. The bond's yield to maturity is 4.8%. The call price must offer an equivalent yield to a Canada Bond plus .35%. Currently, 6-year Government of Canada bonds are yielding 4%. Assume coupons are paid annually.

a) What is the current bond price?

b) What is the current call price?

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Financial Management: What is the current bond price what is the current call
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