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A $100 bond paying coupons at j 2 = 8% is redeemable at par in 15 years, and callable at 110 from years 5 to

A $100 bond paying coupons at j₂= 8% is redeemable at par in 15 years, and callable at 110 from years 5 to 10. What is the maximum purchase price an investor would be willing to pay which would guarantee a yield of j₂= 9%?

Select one:

a. $97.64

b. $101.86

c. $91.86

d. $ 102.48

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