Problem 4 (8 points) We consider a 20-year callable bond issued today. - The bond has face value F=1000, annual coupon rate 6% payable semi-annually. - The bond is callable at any coupon payment date starting from 8th year. The redemption price is $1300 if the bond is called in 8th13th year and is $1150 if the bond is called in 14th year-20 th year (including maturity date). - The minimum yield rate of the callable bond, quoted as annual nominal yield rate, is 4.8%. Question: (a) Calculate the current price of the callable bond. (b) Hence, calculate the maximum annual nominal yield rate of the callable bond. ((9) Hint: It appears that the theorems in the lecture note do not work. Is it possible for us to modify it? Please show details.)