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An option for financing is to call in the outstanding bonds

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An option for financing is to call in the outstanding bonds and obtain
a loan with better terms. The company has a 6% coupon bond the matures in 11 years and pays interest semiannually. What is the market price of a $1,000 face value bond if the current interest rate is 12.9%? Is a loan worth pursuing if the interest rate is 13%?

 
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