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A 20-year maturity, 7.6% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,170. The bond currently sells at
A 20-year maturity, 7.6% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,170. The bond currently sells at a yield to maturity of 6.6% (3.30% per half-year).
What is the yield to call?
What is the yield to call if the call price is only $1,120?
What is the yield to call if the call price is $1,170 but the bond can be called in four years instead of seven years?
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