Assignment:
Consider the following bond:
Coupon rate " 11%
Maturity " 18 years Par value " $1,000
First par call in 13 years
Only put date in five years and potable at par value
Suppose that the market price for this bond is $1,169.
a. Show that the yield to maturity for this bond is 9.077%.
b. Show that the yield to first par call is 8.793%.
c. Show that the yield to put is 6.942%.
d. Suppose that the call schedule for this bond is as follows: Can be called in eight years at $1,055 Can be called in 13 years at $1,000 And suppose this bond can only be put in five years and assume that the yield to first par call is 8.535%. What is the yield to worst for this bond?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.