Assumption that call will be on first available call date

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Reference no: EM131490449

Corso Books has just sold a callable bond It is a? thirty-year quarterly bond with an annual coupon rate of 7?% and ?$5,000 par value. The? issuer, however, can call the bond starting at the end of 6 years. If the yield to call on this bond is 9?% and the call requires Corso Books to pay one year of additional interest at the call ?(4 coupon? payments), what is the bond price if priced with the assumption that the call will be on the first available call? date?

Reference no: EM131490449

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