What does a call provision allow issuers to achieve

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Problem 1: ABC Corporation outstanding bonds have a par value of $1000, 8% coupon and 15 years to maturity and a 10% YTM. What is the bond's price?

Problem 2: What does a call provision (call feature) allow (bond) issuers to achieve and under what circumstances would they do it?

Reference no: EM132792927

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