Question: [ 6 marks ] A $ 1 2 , 0 0 0 callable bond matures on November 2 7 , 2 0 3 3 ,

[6 marks] A $12,000 callable bond matures on November 27,2033, at par. It is callable on May 27,2024 at par. Interest on the bond is 7.5% compounded semi-annually. a. Find the purchase price on November 27,2021, to guarantee an investor a yield of 5.5% compounded semi-annually. b. Suppose the bond is not called on May 27,2024. Suppose further that the bond will be sold on January 05,2029 at a price to yield 9% compounded semi-annually until maturity. Find the: purchase (a.k.a. full or flat) price P, accrued interest I, market price Q, and the market quotation q.
[ 6 marks ] A $ 1 2 , 0 0 0 callable bond matures

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