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A 20-year, 8% annual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The

A 20-year, 8% annual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040. The bond sells for $1,100. (Assume that the bond has just been issued.)
Basic Input Data:
Years to maturity: 20
Periods per year: 1
Periods to maturity: 20
Coupon rate: 8%
Par value: $1,000
Periodic payment: $80
Current price $1,100
Call price: $1,040
Years till callable: 5
Periods till callable: 5
a. What is the bond's yield to maturity? 7.05%
b. What is the bond's current yield? 7.69%
d. What is the bond's yield to call? 7.27%

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