Intro

A corporate bond pays interest twice a year and has 18 years to maturity, a face value of $1,000 and a coupon rate of 6%. The bond's current price is $1,414.91. It is callable starting 12 years from now (years to call) at a call price of $1,090.

Attempt 1/3 for 7.5 pts.

Part 1

What is the bond's (annualized) yield to maturity?

4 decimals

Submit

Attempt 1/3 for 7.5 pts.

Part 2

What is the bond's (annualized) yield to call?

4 decimals

Submit

Attempt 1/3 for 7.5 pts.

Part 3

If you buy the bond today and hold it as long as possible, which rate of return can you expect to earn?

The yield to call (YTC)

The yield to maturity (YTM)