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| rev | Admin | (Created page with "'''Solution: B''' Given the price is less than the amount paid for an early call, the minimum yield rate for this callable bond is calculated based on a call at the latest possible date. Thus, for an early call, the effective yield rate per coupon period, j, must satisfy <math display = "block"> \mathrm{Price} = 1021.50=22a_{\overline{19}| j}+1200 v_{j}^{19}. </math> Using the calculator, j = 2.86%. We also must check the yield if the bond is redeemed at maturity. Th...") | Nov 19'23 at 18:02 | +758 |