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Corso Books has just sold a callable bond. The bond is a thirty - year semiannual bond with a coupon rate of 6 % .

Corso Books has just sold a callable bond. The bond is a thirty-year semiannual bond with a coupon
rate of 6%. Investors, however, can call the bond starting at the end of ten years. If the yield to call
on this bond is 8% and the call requires Corso Books to pay one year of additional interest at the call
(two coupon payments), what is the bond price if priced with the assumption that it will be called on
the first available call date? please provide the formulas and solution step by step

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