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Highfield Inc's bonds currently sell for $1,100 and have a par value of $1,000. They pay a $80 annual coupon and have a 15-year maturity,
Highfield Inc's bonds currently sell for $1,100 and have a par value of $1,000. They pay a $80 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,080. What is their yield to call (YTC), their yield to maturity (YTM) and current yield?
If the current market interest rate is 8%, at what price should the bonds sell?
Please give instructions using the tools of a financial calculator, such as the BA II +.
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