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A company issues a 30-year $5500 bond, redeemable at 98 with bond interest at j2 = 6%. The bond is callable at the end of
A company issues a 30-year $5500 bond, redeemable at 98 with bond interest at j2 = 6%. The bond is callable at the end of 20 years for $4500, at the end of 25 years for $5955 or at the end of 15 years for $7035. Determine the price to guarantee the investor a yield of j2 = 9%.
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