Question: (1 point) (Exercise 6.25) A $1000 par value 7% bond with semiannually coupons is callable 5 years after issue. The bond matures for $1000 at

(1 point) (Exercise 6.25) A $1000 par value 7% bond with

(1 point) (Exercise 6.25) A $1000 par value 7% bond with semiannually coupons is callable 5 years after issue. The bond matures for $1000 at the end of ten years and is sold to yield a nominal rate of 6% convertible semiannually under the assumption that the bond will not be called. Find the redemption value at the end of 5 years that will provide the purchaser the same yield rate. ANSWER = $

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