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Sue purchased a 10-year bond with semiannual coupons at a nominal annual rate of 8% convertible semiannually at a price of 1021.50. The bond can
Sue purchased a 10-year bond with semiannual coupons at a nominal annual rate of 8% convertible semiannually at a price of 1021.50. The bond can be called at par value X on any coupon date starting at the end of year 5. The price guarantees that Sue will receive a nominal annual rate of interest convertible semiannually of at least 6%. Calculate X.
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