With a callable bond, the yield to maturity can often be misleading if it is likely that the bond will be called. In general, a bond will only be called when interest rates have fallen since the company issued the bond. In this case, the company will refund the bond if possible (and profitable) for the company. Refunding simply means that the company issues new bonds with a lower coupon rate and repurchases (calls) the outstanding bonds with a higher coupon rate. Suppose we have a bond that has a fixed call price and the following information:

Settlement date:	4/15/2014
Maturity date:	10/15/2028
Coupon rate:	9.00%
Coupons per year:	2
Price (percent of par):	117.4
Redemption value (percent of par):	100
Call premium (percent of par):	7
Next call date:	10/15/2018

Required:

1. You are required to complete the solution in the Excel sheet by applying the appropriate formula for the calculation of the yield to maturity of this bond. The solution and working from the Excel sheet need to be exported and saved in Word format.
2. Calculate the yield to call of this bond by using an Excel sheet by applying the appropriate formula for the calculation of the yield to call of this bond.