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2. Mike is interested in purchasing a bond that matures in 15 years, pays a 9.0% coupon semiannually and has a yield to maturity of

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2. Mike is interested in purchasing a bond that matures in 15 years, pays a 9.0% coupon semiannually and has a yield to maturity of 6.0%. a. What is the price of the bond? b. What is the current yield and capital gains yield? c. If the bond is callable after 5 years at a price of $1100, what would be your annual yield to call? 3. 2. Mike is interested in purchasing a bond that matures in 15 years, pays a 9.0% coupon semiannually and has a yield to maturity of 6.0%. a. What is the price of the bond? b. What is the current yield and capital gains yield? c. If the bond is callable after 5 years at a price of $1100, what would be your annual yield to call? 3

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