Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semi-annual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $99. What is the bonds yield to maturity and yield to call?

Coupon rate 5%

Payment frequency semi-annually

Time until first call date (years) 2

Term of bond (years) 3

Call price $100

Current price $99

A.Find Coupon Payment:

B. Yield to call:

C. Yield to maturity: