Business, 23.03.2020 16:45 katelynamber10

A 20-year maturity, 8.5% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,125. The bond currently sells at a yield to maturity of 7.5% (3.75% 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 $1,075? (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 $1,125 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

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A 20-year maturity, 8.5% coupon bond paying coupons semiannually is callable in seven years at a cal...