What is the current call price

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Reference no: EM133159339

Question - When Folden ink originally issued its collable 6% 10 year bond it was rated AA and priced to sell at par the bond is Collabo at the price that offers an equivalent yield to a Canada bond +.35% at that time the credit spread over 10 year Canada bonds was .25% the bond pays interest annually

1) What was the call praise at issue?

Now six years later the bond reading agencies have raise the bond rating to AAA in the bond yield to maturity is 4.8% equivalent maturity Canada bonds are yielding 4.55%.

2) What is the current call Price?

3) Would ABC company consider calling the bond now?

Reference no: EM133159339

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