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A 30-year maturity, 8.9% coupon bond paying coupons semiannually is callable in five years at a call price of $1.145. The bond currently sells at
A 30-year maturity, 8.9% coupon bond paying coupons semiannually is callable in five years at a call price of $1.145. The bond currently sells at a yield to maturity of 7.9% (3.95% 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 $1.095? (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 $1.145 but the bond can be called in two years instead of five years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Yield to call
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