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1) A 30 year maturity, 7% coupon bond paying semi-annually is callable in 5 years at call price of $1,100. Bond currently sells at yield
1) A 30 year maturity, 7% coupon bond paying semi-annually is callable in 5 years at call price of $1,100. Bond currently sells at yield to maturity of 6% (3% on semi-annual basis) ( 3 marks ) a. What is the yield to call? b. What is the yield to call if call price is $1,050? c. What is the yield to call if call price is $1,100 but the bond can be called in two years instead of five years
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