Calculate the following for a 20-year, 6.5 percent coupon bond paid semiannually with $1,000 par value if the required yield on the bond is 5.2 percent.

a) Current price

b) Current yield

c) Yield to call (YTC) if the bond is callable at 101.75 in 10 years

d) If interest rates remain unchanged, is the company likely to call the bond based on your calculation in part (b) above? Why or why not?

e) Calculate the realized yield (or horizon yield) if you expect to sell the bond at 102.50 in six years.