Question: A bond has just been issued. The bond is currently selling for $900. The bond will mature in 12 years. The bonds annual coupon rate

  1. A bond has just been issued. The bond is currently selling for $900. The bond will mature in 12 years. The bonds annual coupon rate is 8% and the face value of the bond is $1,000. Coupons will be paid annually. The bond is callable in 8 years and the call price is $1160.
    1. Compute the bonds yield to call.
    2. Compute the bonds current yield.
    3. Compute the bonds annual yield to maturity.

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