answer with detailed solutions please. tq! (without using calculator)

5. A 1000 par value bond pays annual coupons of 80. The bond is redeemable at par in 30 years, but is callable any time from the end of the 10" year at 1050. Based on her desired yield rate, an investor calculates the following potential purchase prices, P: Assuming the bond is called at the end of the 10th year, P = 957 Assuming the bond is held until maturity, P = 897 Ahmad 'Illmi buys the bond at the highest price that guarantees he will receive at least his desired yield rate regardless of when the bond is called. He holds the bond for 20 years, after which time the bond is called. Calculate the annual yield rate Ahmad 'Ilmi earns. Answer: 9.24% 6. A 1000 par value bond with coupons at 9% payable semiannually was called for 1100 prior to maturity. The bond was bought for 918 immediately after a coupon payment and was held to call. The nominal yield rate convertible semiannually was 10%. Calculate the number of years that the bond was held. Answer: 25 years 5. A 1000 par value bond pays annual coupons of 80. The bond is redeemable at par in 30 years, but is callable any time from the end of the 10" year at 1050. Based on her desired yield rate, an investor calculates the following potential purchase prices, P: Assuming the bond is called at the end of the 10th year, P = 957 Assuming the bond is held until maturity, P = 897 Ahmad 'Illmi buys the bond at the highest price that guarantees he will receive at least his desired yield rate regardless of when the bond is called. He holds the bond for 20 years, after which time the bond is called. Calculate the annual yield rate Ahmad 'Ilmi earns. Answer: 9.24% 6. A 1000 par value bond with coupons at 9% payable semiannually was called for 1100 prior to maturity. The bond was bought for 918 immediately after a coupon payment and was held to call. The nominal yield rate convertible semiannually was 10%. Calculate the number of years that the bond was held. Answer: 25 years