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A bond with a par value of $1,000 has a coupon rate of 7% p.a. and a maturity of 13 years. This bond is callable
A bond with a par value of $1,000 has a coupon rate of 7% p.a. and a maturity of 13 years. This bond is callable in 8 years at a price of $1,100. It is currently selling at $1,080. The coupons are paid semi-annually. The effective annual yield to maturity, effective annual yield to call and current yield of this bond are,
a. 6.98%, 6.72% and 6.24% respectively.
b. 5.24%, 5.32% and 5.45% respectively.
c. 6.73%, 6.59% and 6.27% respectively.
d. 8.30%, 8.77% and 8.89% respectively.
e. 6.19%, 6.77% and 6.48% respectively.
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