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A bond with face value 700 has semiannual coupons, a nominal coupon rate of 10% convertible semiannually, and a term of 8 years. The bond
A bond with face value 700 has semiannual coupons, a nominal coupon rate of 10% convertible semiannually, and a term of 8 years. The bond price is 905.25 and it can be called after 6 years with an additional call premium of X. The bond has the same annual nominal yield rate of 2.7% payable semiannually, whether it is called early or not. Find the call premium X. Please show all of your work.
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