Seven years ago hangar corp issued a 25-year bond with a 5


Seven years ago Hangar Corp. issued a 25-year bond with a 5 percent semi-annual coupon. The bond currently sells for $815.

(a) What is the bond's yield to maturity (YTM)?

(b) If the bond can be called in six years for redemption price of $1,075, what is the bond's yield to call (YTC)?

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