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Business, 14.10.2019 23:30 vorequeen

Lowell inc. has bonds which mature in 10 years, and have a face value of $1,000. the bonds have a 10 percent quarterly coupon (i. e., the nominal coupon rate is 10 percent). the bonds may be called in five years. the bonds have a nominal yield to maturity of 8 percent and a yield to call of 7.5 percent. what is the call price on the bonds?

a. $1,048.34b. $ 379.27c. $1,025.00d. $1,136.78e. $1,036.77

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