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| revprev | Admin | Nov 29'23 at 15:29 | −5 | m | |
| revcur | Admin | (Created page with "'''Solution: C''' Since yield is less than the coupon rate, the purchaser paid a premium for the bond. The issuer wants to end the coupon payments as soon as possible. so we assume the bond will be called after 10 years. Take a period to be 6 months. Thus <math display = "block">\begin{aligned} P & =C v^{20}+F r a_{\overline{20} \mid}=1000\left(1.025^{20}\right)+35 a_{\overline{20 \mid} \mid .025} \\ & =1000\left(1.025^{-20}\right)+35 \frac{1-1.025^{-20}}{.025}=1155.89...") | Nov 29'23 at 12:09 | +739 |