Find the price that will guarantee an investor a yield rate


Suppose that a 10-year bond with a face value of $1000 pays semiannual coupons at a rate of 3.5% per half year. The issuer of the bond has the option to redeem it at the time of the 16th coupon for $2100 or at maturity for $2000. Find the price that will guarantee an investor a yield rate of at least 12.2% convertible semiannually, regardless of when the bond is redeemed.

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Financial Management: Find the price that will guarantee an investor a yield rate
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