Question: A $1000 par value 8 % bond with semiannually coupons is callable 6 years after issue. The bond matures for $1000 at the end of

A $1000 par value 8 % bond with semiannually coupons is callable 6 years after issue. The bond matures for $1000 at the end of ten years and is sold to yield a nominal rate of 6 % convertible semiannually under the assumption that the bond will not be called. Find the redemption value at the end of 6 years that will provide the purchaser the same yield rate

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