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1 1 . You have a bond with 6 years maturity and 6 % coupon ( interest ) rate. A coupon is paid annually. Its

11. You have a bond with 6 years maturity and 6% coupon (interest) rate. A coupon is paid annually. Its face value is $1000. The bond is priced at $980. This bond carries call provision in which a bond can be called back by an issuer in three years and a call pr ice is $1100. How much is Yield to Call if called back in three years? Ans: 9.83%

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