You own a bond with a coupon rate of 6.3 percent and a yield to call of 7.2 percent. The bond currently sells for $1,105. If the bond is callable in five years, what is the call premium of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
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You own a bond with a coupon rate of 6.3 percent and a yield to call of 7.2 percent. The bond currently sells for $1,105. If the bond is callable in five years, what is the call premium of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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