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5) You consider purchasing a 25-year 1000 par value bond with semi-annual coupons at a nominal rate of 6% convertible semi-annually with a yield of

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5) You consider purchasing a 25-year 1000 par value bond with semi-annual coupons at a nominal rate of 6% convertible semi-annually with a yield of 10%. The bond can be called at: - 1200 on any coupon date from the end of year 18 to the end of year 20 - 1300 on any coupon date from the end of year 21 to the end of year 25 What is the maximum price you should pay for the bond

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