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Four years ago your firm issued $1,000 par, 25-year bonds, with a 7 percent annual coupon rate and a 10 percent call premium. a. If

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Four years ago your firm issued $1,000 par, 25-year bonds, with a 7 percent annual coupon rate and a 10 percent call premium. a. If these bonds are now called, what is the approximate yield to call (YTC) for the investor who originally purchased them when they were issued? b. If these bonds are now called, what is the actual yield to call (YTC) for the investor who originally purchased them when they were issued? (Use the present value method for calculation.) c. If the current interest rate (yield-to-maturity) is 5 percent, what would an equivalent non-callable bond be selling for? Assume that you purchase an 8 percent semi-annual. 20-year. $1,000 par bond, priced at $1, 012.50, when it has 12 years remaining until maturity. a. What is the bond's approximate yield-to-maturity (YTM)? b. What is the bond's actual yield-to-maturity (YTM)? c. If the bond is callable in 3 years, what will its current yield-to-call (YTC) be

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