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Gabriel purchased a 18-year 5% semiannual coupons bond with face amount $1000 that is callable on any coupon date in the 10th to 18th years.
Gabriel purchased a 18-year 5% semiannual coupons bond with face amount $1000 that is callable on any coupon date in the 10th to 18th years. (0 In the 10th year, the bond is callable at par (i) In the 11th to 16th year, the bond is callable at redemption amount of $1278. (in) In the 17th to 18th year, the bond is callable at redemption amount of $1080. The maximum price Gabriel should pay in order to ensure a minimum nominal annual rate of 4% is
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