Suppose a 10 year, 10 percent, 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 percent However, the bond can be called after 5 years for a price of $1,050 What is the bond 's nominal yield to call (YTC) ...

If the bond were called bondholders would receive 1050 at the end of year 5 Thus the time line ...

Suppose a 10-year, 10 percent, semiannual coupon bond with a par value of $1,000 is currently selling

Question:

Suppose a 10-year, 10 percent, semiannual bond with a of $1,000 is currently selling for $1,135.90, producing a nominal yield to of 8 percent. However, the bond can be called after 5 years for a price of $1,050.
What is the bond's nominal yield to call (YTC)?

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...