What is the call price on the bonds

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Question - ABC Inc. has bonds which mature in 10 years, and have a face value of $1,000. The bonds have a 10 percent semi-annual coupon (i.e., the nominal coupon rate is 10 percent). The bonds may be called in five years. The bonds have a nominal yield to maturity of 8 percent and a yield to call of 7 percent. What is the call price (FV) on the bonds?

Reference no: EM132924033

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