Question: A $100 par value 20-year callable bond paying 5.5% coupons annually has a call protection period of 10 years. The bond is redeemable: a.) at

A $100 par value 20-year callable bond paying 5.5% coupons annually has a call protection period of 10 years. The bond is redeemable:

a.) at the end of the 11th to the 15th year, at 104%

b.) at the end of the 16th to the 20th year, at par.

Find the price of the bond if the yield rate of the bond is not less than 5.3%.

Please show all work by hand, without using a finance calculator or Excel. Thank you.

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