Example $6\mathrm{.}4\mathrm{.}3$

The ABC Corporation issues a $20-$year $$1000$ bond with bond

interest at $j_2=6\%.$ The bond is callable at the end of $10$ year at

$$1100,$ at the end of $15$ years at $$1050$ or at the end of $20$ year

at par. Find the price to guarantee an investor a yield rate of $j_2$

$=5\%.$