A bond is sold for its face value of $1,000 with a 25-year maturity, a 9% coupon, and interest paid semiannually. The bond is callable 5 years from issuance at an 11% premium over face value. What is the bond's yield to call today if investors expect the bond to be called?
a. 10.72%
b. 9.00%
c. 9.12%
d. 5.36%
A bond was sold for its face value of $1,000 with a 25-year maturity, a 7% coupon, and interest paid semiannually. The bond was issued 17 years ago, currently sells for $646.74 and has 8 years to maturity. What is the bond's yield to maturity?
a. 14.09%
b. 15.21%
c. 14.77%
d. 14.64%