Question: ANSWER WITH EXCEL 2. On Aug 15th, 2016 you are offered the following bond: Face value $250 (par value) Coupon rate 7% Coupon frequency semiannual

ANSWER WITH EXCEL

2. On Aug 15th, 2016 you are offered the following bond:

Face value $250 (par value)

Coupon rate 7%

Coupon frequency semiannual (8/15 & 2/15)

Maturity date Aug 15, 2058

First call date February 15, 2027

Call premium 3% of the face value

Bond current market price $300

a. Calculate the yield to maturity.

b. What is the current yield

c. Calculate Yield to Call

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