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A 10-year, 8 % semiannual coupon bond with a par value of $1,000 may be called in 7 years, at a call price of $1,100.

A 10-year, 8 % semiannual coupon bond with a par value of $1,000 may be called in 7 years, at a call price of $1,100. The bond sells for $1,500. (Assume the bond has just been issued).

1 - What is the bonds yields to maturity?

2 - What is the bonds current yield?

3 - What is the bonds capital gain or loss yield in the first year?

4 - What is the bonds yield to call

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