A 7% corporate bond with 6 years to maturity has a Canada call. The bond's yield to

Question:

A 7% corporate bond with 6 years to has a Canada call. The bond's yield to is 4.8%. The call price must offer an equivalent yield to a Canada bond plus .35%. Currently, 6-year Government of Canada bonds are yielding 4%. Assume coupons are paid annually.
a. What is t he current bond price?
b. What is the current call price?
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...