Response to the following problem:
Using annual compounding, find the yield-to-maturity for each of the following bonds.
a. A 9.5%, 20-year bond priced at $957.43
b. A 16%, 15-year bond priced at $1684.76
c. A 5.5%, 18-year bond priced at $510.65
Now assume that each of the above three bonds is callable as follows: bond a is callable in seven years at a call price of $1095; bond b is callable in five years at $1250; and bond c is callable in three years at $1050. Use annual compounding to find the yield-to-call for each bond.