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A 1000 par value bond with 6% semi-annual coupons can be called at 950 on any coupon date starting 2 years from date of issue,

A 1000 par value bond with 6% semi-annual coupons can be called at 950 on any coupon date starting 2

years from date of issue, and will mature at par after 5 years from date of issue. An investor expecting a

minimum yield of 4% per semi-annum purchased the bond and called the bond 4 years after the date of

issue. Find the actual yield rate of the investor.

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