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Matt purchased a 20-year par value bond with an annual nominal coupon rate of 8% payable semiannually at a price of 1722.25. The bond can
Matt purchased a 20-year par value bond with an annual nominal coupon rate of 8% payable semiannually at a price of 1722.25. The bond can be called at par value X on any coupon date starting at the end of year 15 after the coupon is paid. The lowest yield rate that Matt can possibly receive is a nominal annual interest rate of 6% convertible semiannually. Calculate X (A) (B) 1400 1420 1440 1460 (D) (E) 1480
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