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Dominique LeBlanc is the owner of a new ten-year $ 50000 8% par-value bond with a Bermuda option and annual coupons. Allowable call dates are
Dominique LeBlanc is the owner of a new ten-year $ 50000 8% par-value bond with a Bermuda option and annual coupons. Allowable call dates are at the ends of years 6 through 10, and the call premium at the end of each year is a constant $300. Dominique purchased the bond for $ 51248.
a. Find the lowest yield that Dominique may receive during the period she holds the bond as well as the highest.
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