Please show all your work.

2. A corporation purchases a $4,000 9% callable bond having semi-annual coupon pay. ments with maturity in X years. The bond's redemption amount at maturity is $4,200. The bond may be called at the end of year 5 or at the end of year 10 with a redemption amount of $4,200. The price of another identical non-callable bond is $5025.71 at an effective semi-annual yield rate of 3.25%. (a) Find X (b) Find the price of the callable bond to yield at least 12) = 6.5%. 2. A corporation purchases a $4,000 9% callable bond having semi-annual coupon pay. ments with maturity in X years. The bond's redemption amount at maturity is $4,200. The bond may be called at the end of year 5 or at the end of year 10 with a redemption amount of $4,200. The price of another identical non-callable bond is $5025.71 at an effective semi-annual yield rate of 3.25%. (a) Find X (b) Find the price of the callable bond to yield at least 12) = 6.5%