Question: please use hand writting and explaning in step by step Matt purchases a 20-year par value bond with 8% semiannual coupons at a price of
Matt purchases a 20-year par value bond with 8% semiannual coupons at a price of 1,722.25. The bond can be called at par value X on any coupon date staring at the end of year 15 . The price guarantees that Matt will receive a nominal semiannual yield of at least 6%. Bert purchases a 20-year par value bond identical to the one purchased by Matt except it is not callable. Assuming a nominal semiannual yield of 6%, the cost of the bond purchased by Bert is P. Calculate P
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