187. You are given the following information about an ni-year bond, where n > 10: The bond pays 8% semiannual coupons and has a face amount of 1000. The bond is redeemable at par. The bond is callable at par 5 years after issue or 10 years after issue. P is the price to guarantee a yield of 6.8% convertible semiannually and Q is the price to guarantee a yield of 8.8% convertible semiannually. P-Q1 = 123.36 Calculate n. Answer: n = 19 Solution: When the yield is 6.8% 8%, the bond is sold at discount. Hence Q 10: The bond pays 8% semiannual coupons and has a face amount of 1000. The bond is redeemable at par. The bond is callable at par 5 years after issue or 10 years after issue. P is the price to guarantee a yield of 6.8% convertible semiannually and Q is the price to guarantee a yield of 8.8% convertible semiannually. P-Q1 = 123.36 Calculate n. Answer: n = 19 Solution: When the yield is 6.8% 8%, the bond is sold at discount. Hence Q