Question: A newly-issued corporate bond has 20 years to maturity. The bond has a coupon rate of 8 percent and pays interest semiannually. Also, the bond is callable in 6 years at a call price equal to 115 percent of par value. The par value of the bonds is $1,000. The yield to maturity is 7 percent.
1) What is the bond's price today ?
2) What is the bond's current yield ?
3) What is the bond's yield to call ?
4) What will be the bond's price one year from today?