There is a callable 6%, 30 year bond which sells for $1,250. If it is callable after 7 years at $1,100, compute its YTC and YTM. What will be the likely case? Will the issuer call it , or not and why yes or no?
Please include the formula for both YTC and YTM. Also, please show work step by step. Please answer the 2 questions What will be the likely case? Will the issuer call it , or not and why yes or no? in detail and explanation. I'm sorry if that is asking too much, but it is really important that I understand how to solve this problem correctly.