What are the ytc and ytm


Question:

What are the YTC and YTM for a 20-year, 8% Semiannual coupon bond selling for $1,225, which can be called in 5 years for $1,085? What is the effective YTC? Would you expect to earn YTM or YTC on this bond and why? Also, show the formula and entries on a financial calculator.

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Finance Basics: What are the ytc and ytm
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