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Excel solution preferred. 3. [3] A $100 par value 20-year callable bond paying 5.5% coupons annually (!), has a call protection period of 10 years.

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Excel solution preferred.

3. [3] A $100 par value 20-year callable bond paying 5.5% coupons annually (!), has a call protection period of 10 years. The bond is redeemable (a) At the end of the 11th to the 15th year, at 104% (b) At the end of the 16th to the 20th year, at par. Find the price of the bond if the yield rate of the bond is not less than 5.3% ANS: $102.1220

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