A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,020. The bond currently sells for $1,059.34. What are the yield to maturity and the yield to call of the bond? What would be the yield to call annually if the call price were only $970?
Problem 1. [25 points] A newly issued bond pays its coupons once annually. Its coupon rate is 5%, its maturity is 20 years, and its yield to maturity is 6%. Find the price of the bond. After one year, the bond is selling at a yield to maturity of 5.5%. Find the holding period return if […]