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A 15-year 1000 par bond has 7% semiannual coupons and is callable at par after 10 years on any coupon day. The bond is priced
A 15-year 1000 par bond has 7% semiannual coupons and is callable at par after 10 years on any coupon day. The bond is priced to have a yield rate of 5%. (a) If you bought this bond, do you want it to be called at the end of year 10 or at the end of year 15? At the end of year (b) Find the price of this bond
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