Should the firm call the bond at time zero

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Question: A firm has issued an 8% coupon bond that matures at time 1. The bond is callable at par on any coupon date. The firm follows a call policy that minimizes the value of its debt. Should the firm call the bond at time 0? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131975328

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