A 25-year maturity, 7.1% coupon bond paying coupons semiannually is callable in six years at a call
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Question:
A 25-year maturity, 7.1% coupon bond paying coupons semiannually is callable in six years at a call price of $1,195. The bond currently sells at a yield to maturity of 6.1% (3.05% per half-year).
a. What is the yield to call? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Yield to call ___%??
b. What is the yield to call if the call price is only $1,145? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Yield to call ___%??
c. What is the yield to call if the call price is $1,195 but the bond can be called in three years instead of six years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Yield to call ___%??
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