Question: please keep 4 decimal points [10] A 10 year coupon bond with face value $ 1200 is callable at $ 1100 just after 6 years

please keep 4 decimal points [10] A 10 year coupon bond with please keep 4 decimal points

[10] A 10 year coupon bond with face value $ 1200 is callable at $ 1100 just after 6 years . The coupon rate is 6%. (a) [5] Find the price of the bond to guarantee that YMT is 7%. (Hints: You need to find the prices of the bond with YMT =7% if it called just after years and if it is not called. The smaller one is the price that guarantee YTM is at least 7%. ) (b) [5] Find the YMT of the bond if the price of the bond is $ 1000 and the bond is not called

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