findlay corp has a callable bond outstanding (semiannual coupon paying) the call provision guarantees that the bond won’t be called in the first 10 years of its life and if its called thereafter the bondholder will be compensated with an extra years interest at the 12% coupon rate. the bond is now 5 years into its 25 year life. the market interest rate has fallen to 6% so its likely that the bond will be called as soon as the contract allows. what should the bond sell for today?
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