Bond indenture stated that the bonds were callable

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Five years ago BLK issued bonds with a 7 percent coupon interest rate. The bond's indenture stated that the bonds were callable after three years. So, four years later interest rates fell to 5 percent, the company called the old bonds and refunded at the 5 percent rate. If BLK issued 30,000 10-year bonds, how much did BLK save in interest per year?

Reference no: EM131067557

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