What is the yield to call $($YTC$)$ of a $20-$year $8\%$ bond selling for $$1030?$ The call defermen period for the bond is $5$ years. Call premium $=40.$

$[$Hint: It means that your $N=5^{**}2=10,$ and your face value$=1040]$

$N=10$

$PMT=40$

$FV=1000$

$PV=-1030$

$YTC=8\mathrm{.}3123\%$

Still considering the same bond as question $10,$ suppose you buy it today but expect to sell it in $2$ years at a YTM $=4\%.$ That is$,$ you expect the yield to maturity on this bond to be $4\%$ when you sell it in $2$ years. What price do you expect to sell it for? What is your expected holding period yield if you buy it today and sell it at the expected sell price?