Question: A bond with 8 years remaining until maturity is currently trading for 102 per 100 of par value. The bond offers an 6% coupon rate

A bond with 8 years remaining until maturity is currently trading for 102 per 100 of par value. The bond offers an 6% coupon rate with interest paid semiannually. The bond is first callable in 4 years with a call price of 102 and is callable in 5 years with a call price of 101 The bond's yield-to-first call is closest to: 5.889 b. 6.78% 8.64% The correct answer is 5.88%

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