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3.4 On June 15,2005 a corporation issues an 8% bond with a face value of 1,000,000. The bond can be redeemed, at the option of

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3.4 On June 15,2005 a corporation issues an 8% bond with a face value of 1,000,000. The bond can be redeemed, at the option of the corporation, on any coupon date in 2016 or 2017 at par, on any coupon date in 2018 through 2020 for amount 1,200,000, or on any coupon date in 2021 through June 15,2023 at redemption amount 1,300,000. (a) Find the price to yield a minimum nominal annual rate of (i) 10% and (ii) 621%. (b) Find the minimum nominal annual yield if the bond is bought for (i) 800,000 , (ii) 1,000,000, or (iii) 1,200,000

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