Question
A 20-year maturity, 7.0% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,200. The bond currently sells at
A 20-year maturity, 7.0% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,200. The bond currently sells at a yield to maturity of 6.0% (3.00% per half-year).
a. What is the yield to call? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Yield to call %
b. What is the yield to call if the call price is only $1,150? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Yield to call %
c. What is the yield to call if the call price is $1,200 but the bond can be called in four years instead of seven years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Yield to call %
please show work
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