What is the yield to call if the current price is equal

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1. Blue Water Homes have 8 percent bonds outstanding that mature in 13 years. The bonds pay interest semiannually. These bonds have a par value of $1,000 and are callable in 2 years at a premium of $75. What is the yield to call if the current price is equal to 103.25 percent of par?

7.51 percent

7.70 percent

8.06 percent

8.98 percent

9.66 percent

2. A $1,000 semiannual coupon bond matures in 15 years, has a coupon rate of 7.5 percent, and a market price of $982. What is the yield to maturity?

3.86 percent

4.01 percent

4.08 percent

7.53 percent

7.70 percent

Reference no: EM131579337

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