The price at which sue purchases the bond guarantees that


Sue purchases a 10-year par value bond with semi-annual coupons at a nominal annual rate of 4% convertible semi-annually at a price of 1,021.50. The bond can be called at par value X on any coupon date beginning at the end of year 5. The price at which Sue purchases the bond guarantees that Sue will receive a nominal annual rate of interest convertible semi-annually at 6%. What is X?

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Financial Management: The price at which sue purchases the bond guarantees that
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