Question: A) Consider a bond with a face value of $1000. offering coupons of 10% per annum and yielding 6.5% nominal quarterly and redeeming, at the

A) Consider a bond with a face value of $1000. offering coupons of 10% per annum and yielding 6.5% nominal quarterly and redeeming, at the issuer's option, at 95 at the end of years 11 through 15, at par at the end of years 16 through 20, and at 110 at the end of years 21 through 25.

B) What will be the issue price of the bond if the bond redeems at the investor's option?

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