Question: A $1000 par value 8% bond with semiannually coupons is callable 5 years after issue. The bond matures for $1000 at the end of ten

A $1000 par value 8% bond with semiannually coupons is callable 5 years after issue. The bond matures for $1000 at the end of ten years and is sold to yield a nominal rate of 5% convertible semiannually under the assumption that the bond will not be called. Find the redemption value at the end of 5 years that will provide the purchaser the same yield rate.

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