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We want to find the yield to maturity of a bond, which sells for $1200, pays 8% coupon per annum and matures in 15 years.

We want to find the yield to maturity of a bond, which sells for $1200, pays 8% coupon per annum and matures in 15 years. If the bond is callable after 4 year at 115 par value, what is the yield to call? Why is the price selling at a premium? What is the most likely rate of return that the investor will make in this bond? Why? You must show all work and formulas

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