A $1000 bond with semi-annual coupons at j₂ = 8% maturing at par in 10 years is callable at the end of 5 years at 102.What is the maximum purchase price an investor would be willing to pay in order to yield at least j₂ = 7%?

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The Answer of A $1000 bond with semi-annual coupons at j₂ = 8% maturing at par in 10 years is callable at the end of 5 years at 102.What is the maximum purchase price an investor would be willing to pay in order to yield at least j₂ = 7%?

A $1000 Bond with Semi-Annual Coupons at J2 = 8

A $1000 Bond with Semi-Annual Coupons at J₂ = 8