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8. A callable bond with a face value of $1,000 has 8% semiannual coupons and is redeemed at par. The possible range for the early

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8. A callable bond with a face value of $1,000 has 8% semiannual coupons and is redeemed at par. The possible range for the early redemption is at the end of the 10th through the 15th years at par. Find the price of this callable bond if the yield is guaranteed to be at least (a) 6% convertible semiannually; (b) 10% convertible semiannually. (Answer: (a) 1,148.775; (b) 846.27)

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