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Business, 03.12.2019 17:31 hardwick744

A10% bond with face amount 100 is callable on any coupon date from 15 1/2 years after issue to the maturity date which is 20 years from issue.

a. find the price of the bond to yield a minimum nominal annual rate of (i) 12%, (ii) 10%, and (iii) 8%

b. find the minimum annual yield to maturity if the bond is purchased for (i) 80, (ii) 100, and (iii) 120.

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