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Yield to Maturity and Call with Semiannual Payments Thatcher corporation's bonds will mature in 10 years. The bonds have a face value of $1,000 and

Yield to Maturity and Call with Semiannual Payments

Thatcher corporation's bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8% coupon rate, paid semiannually. The price of the bonds is $1,100. The bonds are callable in 5 years at a call price of $1,050. What is their yield to maturity? What is their yield to call?

The answer is YTM = 6.62%. YTC = 6.49%--show all answers and formulas.

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