(Solution) - Apollo s Alpha 1 bond was issued at a time when interest -(2025 Original AI-Free Solution)

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Apollo?s Alpha-1 bond was issued at a time when interest rates were even higher. It has a coupon rate of 22%, a $1,000 face value, an initial term of 30 years, and is now 13 years old. Calculate its price if interest rates are now 12%, compare it with the price that would exist if there were no call feature, and comment on the difference.