Determining the bonds yield to call

Reference no: EM13826778

Problem: A bond with the face value of $1000 matures in 12 years and has a 9% semi-annual coupon (That is the bond pays a $45 coupon every six months). The bond has a nominal yield to maturity (YTM) of 7.5% and it can be called in 4 years at a call price of $1,045. What is the bonds yield to call?

Reference no: EM13826778

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