What is the yield to call if they are called in 5 years


Yield to Maturity and Yield to Call

Arnot International's bonds have a current market price of $1,200. The bonds have an 10% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (Call price = $1,090).

What is the yield to maturity? Round your answer to two decimal places.

What is the yield to call, if they are called in 5 years? Round your answer to two decimal places.

 

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Finance Basics: What is the yield to call if they are called in 5 years
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