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A 20-year bond with a 1,000 par value pays semi-annual coupons at a 6% (anr ual) coupon rate. The bond is callable on any coupon

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A 20-year bond with a 1,000 par value pays semi-annual coupons at a 6% (anr ual) coupon rate. The bond is callable on any coupon date on or after its 10th anniversary with a 4% call premium. If the bond is not called, it will be redeemed at par on its 20th anniversary. The pond is purchased on its 5th anniversary at a price that assures a yield of at least 6.5% convertible semi-annually. If the bond is called on its 12th anni versary, what is the purchaser's actual yield (convertible semi- anni ally)? A) 6.01% B) 6.33% C) 6.67% D) 6.99% E) 7.33%

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