1. A 10-year, 10% annual coupon, $1,000 par value bond is selling for $1,135.90. It can be called after 4 years at $1,050. Whats the bond's yield to call(YTC)? What's the bond's YTM? if you buy this bond, which yield would you more likely to earn?
2. A callable bond ha 20 years to maturity, 6% coupon rate, current market price is $860. Can be called in 5 years at call price of $1060. It is a semiannual bond. What is YTM? YTC? Current Yield? Capital Gains Yield?