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(d) You purchased a 30-year par value bond with 8% semiannual coupons at a price of $2,722.25. The bond can be called at par value

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(d) You purchased a 30-year par value bond with 8% semiannual coupons at a price of $2,722.25. The bond can be called at par value F on any coupon date starting at the end of year 15. The price guarantees that you will receive a nominal semiannual yield of at least 6%. Your friend purchased a 30-year par value bond identical to the one you purchased, except that it is not callable, and is redeemable at par. Assuming a nominal semiannual yield of 6%, find F and the price of your friend's bond P. [5]

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