Question 4 (6 marks)

a) Suppose that you have a 10-year, semiannual pay, 6% coupon, $1,000 par bond callable after 5 years at 104, trading at 98.

I. Calculate the YTM (2 marks)

II. Calculate YTC (2 marks)

b) Suppose that you have a 10-year, semiannual pay, 6% coupon, $1,000 par bond puttable after 5 years at 96, trading at 102. calculate YTP (2 marks)