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You own a 10.4 percent coupon bond with a par value of $1,000. The bond matures in 16 years and pays interest semiannually. The bond

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You own a 10.4 percent coupon bond with a par value of $1,000. The bond matures in 16 years and pays interest semiannually. The bond is callable in 5 years at a premium of $80. The yield to call is 12.4 percent while the yield to maturity is 11.8 percent. (a) (3 points) What is the present value of the coupons for the callable bond? Use the formula. (b) (3 points) What is the callable bond currently selling for? Use the formula to) (1 point) What is the callable bond's current yield? Paragraph BI 66 E E Path:p

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