Ferm Q5 (4 points) You are pricing each of the following callable bonds to guarantee a minimum yield rate of i(2) = 5% compounded semi-annually and want to do as few calculations as possible. Answer the questions below with a full written explanation. Justifications using price calculations at each call date will not receive marks. a) 12 pts] A 15-year $1000 bond with semi-annual coupons paid at a nominal rate of 6% compounded semi-annually is callable at $1100 at the end of years 5 to 15. Which redemption date would give the highest yield when called at? Justity why. b) (2 pts) A 15-year $1000 bond with semi-annual coupons paid at a nominal rate of 6% compounded semi-annually is callable at $1300 at the end of years 5 to 15. Which redemption date should be used to calculate the price that will guarantee a minimum yield rate of (2) = 5%. Justify why, + Drag and drop an image or PDF floor click to browse 06 (4 points)