Reference no: EM132783490

A 20-year maturity, 7.9% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,155. The bond currently sells at a yield to maturity of 6.9% (3.45% 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 $1,105? (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 $1,155 but the bond can be called in four years instead of seven years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Yield to call:_____%