Problem:
A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 5 years at $1,052, and currently sell at a price of $1,099.77.
Required:
Question 1: What is their nominal yield to maturity?
Question 2: What is their nominal yield to call?
Note: Provide support for your underlying principle.