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A 20-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at

A 20-year maturity, 8% 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 7%. (a) What is the yield to call? (b) What is the yield to call if the call price is only $1,050? Provide intuition for your answer. (c) What is the yield to call if the call price is $1,100 but the bond can be called in two years instead of five years

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