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A company's bonds have 20 years to maturityan % coupon paid annually and a \$1,000 par...

A company's bonds have 20 years to maturityan % coupon paid annually and a \$1,000 par value. The bonds Currently sell for \$1,150 , but can be called in years at a price of $1,100. What is the nominal yield to call (YTC on these bonds (to one decimal place, e.g. 5.1\%) )?

8% coupon paid annually

5 years
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Answer #1

Calculation of yield to call is shown below

Working is given below

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