Problem 1. What terms (or inputs) are needed to calculate yield to maturity (YTM)? How does this compare to calculating yield to call (YTC)?
Problem 2. Provide the steps taken to calculate YTM using a calculator or MS Excel.
Problem 3. Find a bond on the Wall Street Journal or other online service and calculate its YTM. Show your calculations. Explain why your bond is trading at a premium or discount based on current market conditions. How does bond pricing help forecast future interest rates, or does it? Why?