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A 20-year bond with face amount 1000 and a nominal coupon rate of 8% payable semian- nually can be called at a redemption amount of
A 20-year bond with face amount 1000 and a nominal coupon rate of 8% payable semian- nually can be called at a redemption amount of 800 on any coupon date starting from 15 years after issue up to the maturity date. Find the price of the bond to yield a minimum yield rate j(2) = 6%. [7 pts)
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