Bond currently sells at yield to maturity

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A 25-year maturity, 8.7% coupon bond paying coupons semiannually is callable in six years at a call price of $1,135. The bond currently sells at a yield to maturity of 7.7% (3.85% per half-year).

a. What is the yield to call? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Yield to call             %

b. What is the yield to call if the call price is only $1,085? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Yield to call             %   

c. What is the yield to call if the call price is $1,135 but the bond can be called in three years instead of six years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Yield to call             %

Reference no: EM131346332

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