Toby purchased a twenty$-$year par value bond with semiannual coupona at a nominal annual rate of $8\%$ convertible semanmually at a price of $1,722\mathrm{.}25.$ The bond can be called at par value $1\mathrm{.}100$ on any coupon date slarting at the end of year $15.$

Calculate the minimum yoeld that Toby could receive, expressed as a nominal annual rate of interest convertible semianmually.

Bamille Answers

$3\mathrm{.}2\%$

$3\mathrm{.}3\%$

$3\mathrm{.}9\%$

$19\%$

$16\%$

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