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A 10-year maturity, 8% coupon bond paying coupons semiannually is callable in 5 years at a call price of $1,050. The bond currently sells at

A 10-year maturity, 8% coupon bond paying coupons semiannually is callable in 5 years at a call price of $1,050. The bond currently sells at a yield to maturity of 10% (5% per six months).

  1. What is the yield to call?
  2. What is the yield to call if the call price is $1,100 and the bond can be called in 3 years instead of 7 years?

Please explain how you solved it step by step so I can understand how to do it, I can only use my financial calculator.

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