Sneaky Pete Investments issued a 10-year series of bonds at an initial price of $1000 with an annual coupon rate of 6%. One (1) year after issuing the current price of the bond is $1200. The bonds are also callable at the end of five (5) years @ $1060. If you bought the bond 1 year after issuing, and interest rates remain stable, what is

Note: you do not need to use the Yield function to solve this problem.

a) the yield to call? Answer:

b) the yield to maturity? Answer:

c) will Sneaky Pete Investments likely call the bond at the end of year 5? Answer: