Solved: What is the yield to maturity-yield to call on the bond, Finance Basics

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What is the yield to maturity-yield to call on the bond

Problem: Luther Industries has just issued a callable (at 102) ten-year, 8% coupon bond with semi-annual coupon payments. The bond can be called at 102 in three years or anytime thereafter on a coupon payment date. It has a current price of 99.

Q1. What is the Yield to Maturity (YTM) on this bond?

Q2. What is the Yield to Call (YTC) on this bond?

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Finance Basics: What is the yield to maturity-yield to call on the bond

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