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A 15-year maturity, 7.5% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at
A 15-year maturity, 7.5% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 6% (3% per half-year). a. What is the yield to call annually? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to call b. What is the yield to call annually if the call price is only $1,050? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to call c. What is the yield to call annually if the call price is $1,100, but the bond can be called in two years instead of five years? (Negative amounts should be shown with a minus sign. Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to call
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