What is the yield to call and yield to maturity

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Reference no: EM131813933

Bilham Corporation has a bond issue outstanding with 8 years remaining until maturity. The bond has a coupon rate of 4 percent, paid semiannually. The bonds are currently selling for $896.42 and are callable in three years with a call premium of one percent.

a. What is the yield to maturity?

b. What is the yield to call?

Reference no: EM131813933

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