86 87 (10) Suppose a 10-year, 10%, semiannual coupon bond with a par value of $1,000...

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86 87 (10) Suppose a 10-year, 10%, semiannual coupon bond with a par value of $1,000 is currently selling for $1,135.90, producing a nominal yield to maturity of 8%. However, it can be called after 4 years for $1,050. (1) What is the bond's nominal yield to call (YTC)? 88 (2) If you bought this bond, would you be more likely to earn the YTM or the YTC? 20 89 90 Years to maturity 91 Coupon rate 92 Price 93 Nom YTM 94 Years to call 95 Call price 96 97 N 98 PV 99 PMT 100 FV 101 102 Periodic YTC 103 Nominal YTC 104 Effective YTC 105 Periods per year = 86 87 (10) Suppose a 10-year, 10%, semiannual coupon bond with a par value of $1,000 is currently selling for $1,135.90, producing a nominal yield to maturity of 8%. However, it can be called after 4 years for $1,050. (1) What is the bond's nominal yield to call (YTC)? 88 (2) If you bought this bond, would you be more likely to earn the YTM or the YTC? 20 89 90 Years to maturity 91 Coupon rate 92 Price 93 Nom YTM 94 Years to call 95 Call price 96 97 N 98 PV 99 PMT 100 FV 101 102 Periodic YTC 103 Nominal YTC 104 Effective YTC 105 Periods per year =