What is yield to call of bonds


Response to the following problem:

Thatcher Corporation's bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8 percent coupon rate, paid semiannually. The price of the bonds is $1,100. The bonds are callable in 5 years at a call price of $1,050.

What is their yield to maturity?

What is their yield to call?

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Financial Accounting: What is yield to call of bonds
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