Problem 24-12

Boeing Corporation has just issued a callable (at par) three-year, 5% coupon bond with semi-annual coupon payments. The bond can be called at par in two years or anytime thereafter on a coupon payment date. It has a price of $99. What is the bonds yield to maturity and yield to call?

Coupon Rate	%5.00
Payment Frequency	semi-annually
Time until first call date (years)	2
Term of bond (years)	3
Call Price	$100.00
Current Price	$99.00
Coupon Payment
Yield to Call
Yield to Maturity