Question: QUESTION 8.3 A corporation issues two separate 30 year callable bonds. Both bonds have annual coupons and are priced at the same annual effective yield

 QUESTION 8.3 A corporation issues two separate 30 year callable bonds.

QUESTION 8.3 A corporation issues two separate 30 year callable bonds. Both bonds have annual coupons and are priced at the same annual effective yield rate Both bonds are callable at par anytime starting at the time of the n-th coupon up to the 30th coupon. The bonds are priced per 100 of face amount. Bond A has a coupon rate of 8% and has a price of 125.57. Bond B has a coupon rate of 5% and has a price of 86.24. Find n. e a. 25 c b.27 C. d. 23 c e. 29

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