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A 30-year-maturity, 8 percent coupon bond paying coupons semiannually is callable in five years at a...

A 30-year-maturity, 8 percent coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond currently sells at a yield to maturity of 7 percent (3.5 percent per half-year).

a.

What is the yield to call?

b.

What is the yield to call if the call price is only $1,050?

c.

What is the yield to call if the call price is $1,100, but the bond can be called in two years in-stead of five years?

Please do not show using financial calculator methods. I do not have a financial calculator.

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jeff jeffy answered 9 months ago
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