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XYZ Corp. has $1,000 par 6.5% coupon rate bonds (Coupon paid semi-annually). These bonds were issued last year with an original maturity of 30 years.
XYZ Corp. has $1,000 par 6.5% coupon rate bonds (Coupon paid semi-annually). These bonds were issued last year with an original maturity of 30 years. The bonds are "callable bonds" and may be called in 4 years from now with a call price of $1065. Currently these bonds are selling in the market for 110% of par value.
a. Find Yield to Maturity
b. Find Yield to Call
c. Find Current Yield and Capital Gains Yield
d. Find Effective Yield
Please show all calculations, thank you in advance!
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