Estimating bonds current yield


Suppose a corporation's bonds have a current market price of $1400. The bonds have a 13% annual coupon rate, a $1000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 107% of face value. Complete parts (a) through (c) below.

a) Compute the bonds' current yield.

b) Compute the yield to maturity.

c) Find the yield to call, if the bonds are called in 5 years.

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Finance Basics: Estimating bonds current yield
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