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A 25-year maturity, 8.4% coupon bond paying coupons semiannually is callable in six years at a call price of $1,120. The bond currently sells at
A 25-year maturity, 8.4% coupon bond paying coupons semiannually is callable in six years at a call price of $1,120. The bond currently sells at a yield to maturity of 7.4% (3.70% 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 $1,070? (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 $1,120 but the bond can be called in three years instead of six years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Yield to call %
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