What is the highest price zach should pay to yield

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Question - Zach is going to purchase a callable bond paying semi-annual coupons at an annual rate of 9%. It has a par value of 5,000 and will redeem at par at the end of 20 years. The bond may be called at 5,000 the end of year 9 to year 15 with a call price of $5,000. What is the highest price Zach should pay to yield at least a nominal rate of 5%, convertible semi- annually, at redemption?

Reference no: EM133147900

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