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(10 pts) Sandy bought a 20-year bond with par $10,000 and 8% annual coupons. The bond is callable at par on any coupon date beginning
(10 pts) Sandy bought a 20-year bond with par $10,000 and 8% annual coupons. The bond is callable at par on any coupon date beginning on the 12th coupon date. Find the highest price paid that will yield a rate at least 10%. (Hint: In the worst case, should the bond ever be called?)
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