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A 30-year bond (par= $1,000) has a 5% annual coupon rate. The bond is callable in the seventh year for it called premium of $1,050.

A 30-year bond (par= $1,000) has a 5% annual coupon rate. The bond is callable in the seventh year for it called premium of $1,050. If the bond is trading with a yield to maturity (YTM) of 6%, what is the bonds yield to call (YTC)? Assume the interest on the bond is paid semi-annually.

(show financial calculator functions used, e.g. i, n, fv, pv, pmt )

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