Problem:
A 25-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $950. (Assume that the bond has just been issued.)
Required:
Question 1: What is the bond's yield to maturity?
Question 2: What is the bond's current yield?
Question 3: What is the bond's capital gain or loss yield? Loss should be indicated with minus sign.
Question 4: What is the bond's yield to call?
Please provide calculation and formulas.