Question: Question 11 (1 point) BOND VALUATION. A callable bond with an original maturity of 20 years now has 15 years to mature. The bond was

Question 11 (1 point) BOND VALUATION. A callable bond with an original maturity of 20 years now has 15 years to mature. The bond was originally issued at par with a coupon rate of 12% and semiannual interest payments. The bond can be called 7 years from now at a 20 percent call premium. Calculate this bond's yield-to-call and yield-to-maturity if current price is $860. 1) YTC = 14.29%; YTM = 17.09% 2) YTC - 17.09%; YTM - 14.29% 3) YTC = 7.14%: YTM = 8,55% 4) None of the above

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