Ytm on a bond golf galores non-callable bonds currently


1. YTM on a Bond. Golf Galore's non-callable bonds currently sell for $1,220. They have a 12-year maturity, an annual coupon of $75, and a par value of $1,000 (reminder: the par value is $1000 unless stated otherwise). What is their annual yield to maturity or YTM?

2. YTM. In this case, assume Golf Galore's non-callable bonds currently sell for $1,500. They have a 12-year maturity, an annual coupon of $75, and a par value of $1,000 (reminder: the par value is $1000 unless stated otherwise). What is their annual yield to maturity or YTM?

3. Yield to Call. Assume that Tennis Galaxy bonds currently sell for $1,300, have a par value of $1000, a call value of $1,200, an annual coupon payment of $100. The bonds have a 15-year maturity, but can be called in 10 years at $1,200. What is the yield to call (YTC)?

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