Fahim has been oered a 10 year, $1,000 face value bond for only $950. The

bond pays semi-annual coupons at a the rate r(2) = 1:75%, and it is callable

at the end of year 4 for $975, at the end of year 5 for $1,000, and at the

end of year 6 for $1,050, and at no other times. The bond matures at par.

What yield is Fahim guaranteed to make if he buys the bond at this price?