Coupon bond paying coupons semiannually is callable

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A 30-year maturity, 8% 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% (3.5% per half-year).(write with details please)

a) What is the yield to call?

b) What is the yield to call if the bond can be called in two years instead of five years?

Reference no: EM131837948

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