Semi-annual bond with a coupon rate

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XYZ has just sold a callable bond. The bond is a thirty year semi-annual bond with a coupon rate of 8%. Investors, however, can call the bond starting at the end of ten years. If the yield-to-call on this bond is 10% and the call requires XYZ to pay one year of additional interest at the call (two coupon payments), what is the price of this bond if priced with the assumption that it will be called on the first available call date?

Reference no: EM13803989

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