Whats the ytm for the bond if the bond is callable in 10


A coupon bond has 30 years until maturity and is currently selling at $1,456.75. Coupon rate on the bond is 6.50%, paid semi-annually.

What’s the YTM for the bond?

If the bond is callable in 10 years, with 9% call premium, what’s the YTC?

You bought the bond today. If YTM changes to 5.88% at the end of year 11, and you decide to sell the bond, what will the price be?

Continue from part 3. What will your rate of return be for the 11 years that you held the bond (HPR)?

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Financial Management: Whats the ytm for the bond if the bond is callable in 10
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