The bonds have a face value of 1000 and an 12 coupon rate


Thatcher Corporation's bonds will mature in 20 years. The bonds have a face value of $1,000 and an 12% coupon rate, paid semiannually. The price of the bonds is $850. The bonds are callable in 5 years at a call price of $1,050.

a. What is their yield to maturity?

b. What is their yield to call?

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Financial Econometrics: The bonds have a face value of 1000 and an 12 coupon rate
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