A 6 25 15 year bond, paying interest annually, can be called at 110 of par value in 10 years The bond currently sells for $1,048 a What is the yield to maturity b What is the yield to call ...

A 6.25% 15-year bond, paying interest annually, can be called at 110% of par value in 10

Question:

A 6.25% 15-year bond, paying interest annually, can be called at 110% of in 10 years. The bond currently sells for $1,048.
a. What is the yield to maturity?
b. What is the yield to call?
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...