Question: Problem # 4 : A corporation issues a 2 0 year bond with the final redemption value equal to the face value of $ 1

Problem #4:
A corporation issues a 20 year bond with the final redemption value equal to the face value of $1000, and semiannual coupons of 10%. However, the bond is callable at the end of 10 years at $1100, and at the end of 15 years at $1040. What is the price of the bond if the investors yield (the yield-to-worst) is 9%?

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