Determine bond nominal yield to call


Problem:

A 12year bond has a 10% semiannual coupon and a face value of $1,000. The bond has a nominal yield to maturity of 7%. The bond can be called in five years at a call price of $1,050.

Required:

Question: What is the bond's nominal yield to call?

Note: Provide support for your rationale.

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Finance Basics: Determine bond nominal yield to call
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