1. Romeo bonds have a coupon rate of 11 percent, mature in 14 years to maturity and a current price of $1,086. These bonds can be called away in 6 years with a 5% call premium. Find the yield to call.
2. Joker bonds mature in 11 years, carry a 8.3% coupon rate and current trade for $1210. These bonds are callable in 5 years at a 2% premium. What is the yield to call for these bonds?
3. You bought a 10% bond 8 years ago for $982.5. You believe you can sell your bond three years from today at $995. What is your expected rate of return? .0512 .1024 .0540 .1079.