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For an actuarial science course 21. Callable Bonds A $16,000 6% 8-year par-value bond with annual coupons has an effective annual yield rate of 4%.

image text in transcribed For an actuarial science course

21. Callable Bonds A $16,000 6% 8-year par-value bond with annual coupons has an effective annual yield rate of 4%. (a) Find the price of the bond. (b) Directly after the sixth coupon, you sell the bond to provide the purchaser a 5% effective annual yield. Find the sale price

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