A 30-year maturity, 8% coupon bond paying coupons semiannually
is callable in five years at a call price of
$1,020. The bond currently sells for $1,059.34.
a) What are the yield to maturity and the yield to call of the
bond?
b) What would be the yield to call annually if the call price were
only $970?
c) What would be the yield to call annually if the call price were
$1,020, but the bond could be called in
two...