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Question
Ferrous Metals has bonds outstanding which it is calling today under the make-whole call provision. The bonds mature in 6 years, have a 10 percent coupon, pay interest semiannually, and have a par value of $1,000. What is today's call price given that the applicable discount rate is 7.20 percent?A. $879.12
B. $968.35
C. $1,015.55
D. $1,134.49
E. $1,172.71
Answer
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