You are given: The yield curve is flat, and the rate of interest is 6%. Compounding is semiannual, and the interest rate volatility is zero. A 7-year, 5% coupon bond is putable in 5 years. Determine whether the put will be exercised or not.

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You are given: The yield curve is flat, and the rate of interest is 6%.  Compounding is semiannual, and the interest rate volatility is zero. A 7-year, 5% coupon  bond is putable in 5 years. Determine whether the put will be exercised or not.

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