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Tony purchased a 20-year par value bond with semiannual coupons at a nominal annual rate of 8% convertible semiannually at a price of 1722.25. The
Tony purchased a 20-year par value bond with semiannual coupons at a nominal annual rate of 8% convertible semiannually at a price of 1722.25. The bond can be called at par value 1100 on any coupon date starting at the end of year 15. What is the minimum yield that Tony could receive, expressed as a nominal annual rate of interest convertible semiannually?
A. 3.5%
B. 3.6%
C. 3.3%
D. 3.4%
E. 3.2%
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