What is the implied value of the call feature

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Valuing the Call Feature   Consider the prices of the following three Treasury issues as of February.

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The bond in the middle is callable in February 2013. What is the implied value of the call feature? (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?)

Reference no: EM13213036

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