Question: Problem 1 0 - 3 2 ( Algo ) A 2 0 - year maturity, 7 . 9 % coupon bond paying coupons semiannually is

Problem 10-32(Algo)
A 20-year maturity, 7.9% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,155. The bond currently sells at a yield to maturity of 6.9%(3.45% per half-year).
Required:
a. What is the yield to call? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
b. What is the yield to call if the call price is $1,155 but the bond can be called in four years instead of seven years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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