Question: A 10 -year bond has face value 1000 , same as its redemption amount. It pays semi-annual coupons at an 8% annual coupon rate. The

A 10 -year bond has face value 1000 , same as its redemption amount. It pays semi-annual coupons at an 8% annual coupon rate. The bond is callable at its par value on or after the 14 th coupon date. An investor buys the bond at a price that assures a yield of 7.2% convertible semi-annually. Find the bond's price. Price = Suppose that the bond is actually called after 9 years. What is the investor's actual yield (convertible semi-annually)? yield rate = \% convertible semi-annually
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