You own a bond with a 6 percent coupon rate and a yield to call of 6.90

Question:

You own a bond with a 6 percent rate and a yield to call of 6.90 percent. The bond currently sells for $1,070. If the bond is callable in five years, what is the call premium of the bond?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...