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Show your work, 1) Today you purchased a bond that matures in 5 years, with par value $1,000. The bond's annual coupon is 8%; the
Show your work,
1) Today you purchased a bond that matures in 5 years, with par value $1,000. The bond's annual coupon is 8%; the current yeild is 8.21%. What is it yeild to maturity?
2) Bombs-Away bonds are currently selling at $1,200. Their face value is $1,000, coupon is 11%, and years left to maturity is 10. The bonds are callable in five years, at 109.
a) what is the yeild to maturity?
b) what is the yeild to call if they are called at first opportunity?
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