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2. [4 pts] A seven-year bond with semiannual coupons and an annual coupon rate of 8.6% has a face value of $50,000. The bond is

2. [4 pts] A seven-year bond with semiannual coupons and an annual coupon rate of 8.6% has a face value of $50,000. The bond is redeemable for $45,000 at end of term and is callable at this same amount in years 4 through 7. Suppose the the price is $56,973. (a) What is the maximal annual yield rate convertible semiannually to the investor? (b) What is the minimal annual yield rate convertible semiannuallyimage text in transcribed

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