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 ___%??

Answer rating: 100% (QA)

use rate formaule in excel afirst find the present value of bo... View the full answer