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Problem 14-21 A 15-year maturity, 9% coupon bond paying coupons semiannually is callable in five years at a call price of $1,080. The bond currently
Problem 14-21 A 15-year maturity, 9% coupon bond paying coupons semiannually is callable in five years at a call price of $1,080. The bond currently sells at a yield to maturity of 7% (3.5% per half-year). a. What is the yield to call annually? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to call % b. What is the yield to call annually if the call price is only $1,030? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to call % c. What is the yield to call annually if the call price is $1,080, but the bond can be called in two years instead of five years? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Yield to call %
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