Question: A $ 1 0 0 0 bond redeemable at par at the end of 2 0 years and paying bond interest at 1 1 %

A $1000 bond redeemable at par at the end of 20 years and paying bond interest at 11% compounded semi-annually is callable in 15 years at $1050. Determine the yield rate at semi-annually if the bond is quoted now at 110 assuming (a) It is called. (b) It is not called

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