Question 13.07
Two 20-year bonds have the same purchase price. Both bonds have a par value of 1,000,
and each has an annual coupon rate of 6% paid semiannually.
The first bond has an annual nominal yield rate of 6% compounded semiannually, and its
redemption value is 1,100.
The second bond has an annual nominal yield rate of \textit{i} compounded semiannually, and its
redemption value is 912.
Calculate \textit{i}.
A 2.7%
B 4.9%
C 5.5%
D 6.0%
E 6.6%