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4. A 10-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,060.

4. A 10-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,060. The bond sells for $1,100 (Assume that the bond has just been issued.) (12 points)

a. What is the bonds yield to maturity? (3 points)

b. What is the bonds current yield? (3 points)

c. What is the bonds capital gain or loss yield? (3 points)

d. What is the bonds yield to call? (3 points)

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