Question: Problem #4: A corporation issues a 20 year bond with the final redemption value equal to the face value of S1000 and semiannual coupons of

Problem #4: A corporation issues a 20 year bond with the

Problem #4: A corporation issues a 20 year bond with the final redemption value equal to the face value of S1000 and semiannual coupons of 9.5%. However, the bond is callable at the end of 10 years at $1100, and at the end of 15 years at S 1040. What is the price of the bond if the investor's yield (the "yield-to-worst") is 65%

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