Problem:
You purchase an 8% coupon, 25-year, $1,000 par, semiannual payment bond priced at $980 when it has 15 years remaining until maturity.
Required:
Question 1: What is its yield to maturity?
Question 2: What is the yield to call if the bond is called 5 years from today with a 5% premium?
Note: Please describe comprehensively and provide step by step solution.