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A bond with a par value of $1,000 has a coupon rate of 8% and a maturity of 10 years. This bond is callable in
A bond with a par value of $1,000 has a coupon rate of 8% and a maturity of 10 years. This bond is callable in 5 years at a price of $1,050. It is currently selling at $1,100. The coupons are paid semi-annually The effective annual yield, effective yield to call and current yield of this bond are,
a. 12.30%, 10.25% and 11.89% respectively
b. 6.73%, 6.59% and 7.27% respectively
c.5.24%, 4.32% and 8.45% respectively.
d.6.98%, 5.72% and 8.24% respectively
e.7.45%, 7.13% and 7.79% respectively
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