Wagner Inc.'s bonds currently sell for $1,250 and have a par value of $1,000.

They pay a $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100.

What is their yield to call (YTC)?

Select one:

5.97%

6.28%

5.84%

7.79%

5.03%

None of these is the right answer.

answered through Excel

question 2

Picasso Inc. issues a callable bond that pays semiannual coupons and matures in 10 years. The bond has a face value of $1,000, a nominal coupon rate of 8%, and a nominal yield to call of 7.54%. The bond can be called after 5 years at a call premium in $1,050.

What is the bonds price today?

Select one:

$1,018.87

$1,000

$1,050

None of these is the right answer

$1,053.40

answered through excel