Investments
Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 16, Problem 1CP

a.

Summary Introduction

To determine: The impact on offering yield of adding a call feature to a proposed bond issue.

Introduction: The call feature on a bond provides the right to bond issuers to force the bondholders to call back in their bonds for fixed income, the call price.

b.

Summary Introduction

To determine: The impact on effective bond duration and convexity of adding a call feature to a proposed bond issue.

Introduction:

The call feature on a bond provides the right to bond issuers to force the bondholders to call back in their bonds for fixed income, the call price.

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