Question 1: What is the total future value dollar difference between reinvestment of coupons at the YTM of a bond selling at 98-5/8 with a coupon of 7% (paid semiannually) and a maturity of 12 years and the same bond with a reinvestment assumption of 6%?
Question 2: What is the yield-to-call (YTC) for a bond with three years remaining to first call, a remaining maturity of 17 years, coupon of 10% (paid semiannually), par value of $1,000, 110% call premium, and selling for $1,008.50
Question 3: Assume a 20-year bond, 12% coupon (paid semiannually), $1,000 face, callable after five years at $1,120, and currently selling at par. Calculate the IRR for the 20-year period if the bond is held for five years and then called since market rates have fallen to 8%. How does the IRR of the called bond compare to the original 12% YTM?