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Matt purchases a 20-year par value bond with a nominal annual coupon rate of 8% compounded semiannually for a price of 1722.25. The coupons begin
Matt purchases a 20-year par value bond with a nominal annual coupon rate of 8% compounded semiannually for a price of 1722.25. The coupons begin paying 6-months after the bond is purchased, and the bond can be called at par value Fon any coupon date (after the coupon is paid) starting at the end of year 15 (i.e. can be called after paying the 30th coupon, 31st coupon...., 40th coupon). Given the price (i.e. 1722.25), F is the smallest value that will guarantee (no matter when the bond is called) that Matt will achieve a nominal annual yield rate of at least 6% compounded semiannually. Find F. Give your answer rounded to the nearest whole number (i.e. X)
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