Yield to maturity and yield to call for the bond


Please assist with the given problem:

It is now January 1, 2009, and you are considering the purchase of an outstanding RDC bond that was issued on January 1, 2007. The bond has a 9.5% annual coupon and a 30 year original maturity (it matures in December 31, 2036). There is a 5 year call protection (until December 31, 20011), after which time the bond can be called at 109 (that is, at 109 percent of par, or $1,090). Interest rates have declined since the bond was issued, and the bond is now selling at 116.575% percent of par, or $1,165.75. You want to determine both the yield to maturity and the yield to call for this bond.

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Finance Basics: Yield to maturity and yield to call for the bond
Reference No:- TGS01819325

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