Problem: A newly-issued corporate bond has 20 years to maturity. The bond has a coupon rate of 8 percent and pays interest semiannually. Also, the bond is callable in 6 years at a call price equal to 115 percent of par value. The par value of the bonds is $1,000. The yield to maturity is 7 percent.
a. What is the bond's price today ?
b. What is the bond's current yield ?
c. What is the bond's yield to call ?
d. What will be the bond's price one year from today?