A 30 year maturity, 8 coupon bond paying coupons semiannually is callable in 5 years at a call price of $1,100 The bond currently sells at a yield to maturity of 7 (3 5 per half year) a What is the yield to call b What is the yield to call if the call price is only $1,050 c What is the yield to cal...

a The bond sells for 112472 based on the 35 yield to maturity n 60 i 35 FV 1000 PMT 40 Therefo ...

A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in 5 years at a call

Question:

A 30-year 8% bond paying coupons semiannually is callable in 5 years at a call price of $1,100. The bond currently sells at a yield to of 7% (3.5% per half-year).
a. What is the yield to call?
b. What is the yield to call if the call price is only $1,050?
c. What is the yield to call if the call price is $1,100, but the bond can be called in 2 years instead of 5 years?

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...