Slate Granite Company and Bedrock and Roll Soda Company both have semi-annual coupon , $1000 par value

Question:

Slate Granite Company and Bedrock and Roll Soda Company both have semi-annual coupon , $1000 par value bonds outstanding with an 8.2% coupon rate and 12 years to maturity. Slate's bonds sell for $950 and Bedrock & Roll Soda's bonds sell for $1090. What is each bond's yield to maturity? What is each bond's yield to call if each bond is callable in 3 years at a call price of $1055? Which yield do you think is more likely for each bond if interest rates are expected to remain unchanged for the next 5 years?

1. What is each bond's yield to maturity?

2. What is each bond's yield to call if each bond is callable in 3 years at a call price of $1055?

3. Which yield do you think is more likely for each bond if interest rates are expected to remain unchanged for the next 5 years?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... 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,...