A $1,000 par-value 4% bond with semiannual coupons matures at the end of 10 years. The bond is callable at $1,050 on any coupon date from the 3rd through the 6th years, at $1,025 from the 7th through the 9th years, and at $1,000 during the 10th year. Find the maximum price that an investor can pay and still be certain of a yield of 5% convertible semiannually.

A $1,000 par-value 4% bond with semiannual coupons matures at the end of 10 years. The bond is callable at $1.050 on any coupon date from the 3rd through the 6 th years, at $1,025 from the 7 th through the 9 th years, and at $1,000 during the 10 th year. Find the maximum price that an investor can pay and still be certain of a yield of 5% convertible semiannually