Question

Three years ago, Jack's automotive issued a 10 year callable bond with a $1000 maturity value...

Three years ago, Jack's automotive issued a 10 year callable bond with a $1000 maturity value and a 7.75% coupon rate of interest. Interest is paid semi- annually. The bond, which matures  in fives years, is currently selling for $1065.

A. whist is the bond's yield to maturity?

B. If the bond can be called in 2 years for a call price of $1090, which is the bond's yield to call?

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