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Problem 4. Joey purchases a 15-year par value bond with semiannual coupons of $60 and a redemption value of $1,200. The bond can be called
Problem 4. Joey purchases a 15-year par value bond with semiannual coupons of $60 and a redemption value of $1,200. The bond can be called at $1,300 on any coupon date prior to maturity, starting at the end of year 10 . Calculate the maximum price of the bond to guarantee that Joey will earn an annual nominal interest rate of at least 8% convertible semiannually
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