Question: A 3 0 - year maturity, 8 . 3 % coupon bond paying coupons semiannually is callable in five years at a call price of

A 30-year maturity, 8.3% coupon bond paying coupons semiannually is callable in five years
at a call price of $1,115. The bond currently sells at a yield to maturity of per
half-year).
(a) What is the yield to call?
(b) What is the yield to call if the call price is only $1,065?
(c) What is the yield to call if the call price is $1,115 but the bond can be called in two
years instead of five years?
 A 30-year maturity, 8.3% coupon bond paying coupons semiannually is callable

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