Assume that a corporation's bonds encompass a current market price of $1400. The bonds encompass a 13% annual coupon rate, a $1000 face value, and 10 years left until maturity. The bonds might be called in 5 years at 107% of face value. Complete the parts (a) through (c) below.
a) Calculate the bonds' present yield.
b) Calculate the yield to maturity.
c) Find out the yield to call, if the bonds are called in 5-years.