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Show that the yield to maturity for bond

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Reference no: EM133123714

Consider the following bond:

Coupon rate = 11%

Maturity = 18 years

Par value = $1,000

Par call in 13 years (i.e. no call premium)

Only put date in five years and puttable at par value

Suppose that the market price for this bond $1,169.

a) Show that the yield to maturity for this bond is 9.077%.

b) Show that the yield to par call is 8.793

Reference no: EM133123714

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