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6.16 A $100 par value bond has semiannual coupons of 5% per annum and is callable at the end of the 7-10th year at par.

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6.16 A $100 par value bond has semiannual coupons of 5% per annum and is callable at the end of the 7-10th year at par. Find the most defensive price of the bond if (a) the yield rate is 6% compounded semiannually, (b) the yield rate is 4.5% compounded semiannually

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