Question: A 100 face value bond with 4% semiannual coupons is callable at par in 30 years but can be redeemed at par by the issuer

A 100 face value bond with 4% semiannual coupons is callable at par in 30 years but can be redeemed at par by the issuer any time after the end of year 20. The price of the callable bond is 120 and The minimum possible rate of return is i% convertible semi-annually. calculate i.

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The bond has a coupon rate of 4 semiannually so the coupon payment is 004 100 4 The bond h... View full answer

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