A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a...

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A 30-year maturity, 8% coupon bond paying coupons semiannuallyis callable in five years at a call price of $1,020. The bondcurrently sells for $1,059.34.
a) What are the yield to maturity and the yield to call of thebond?
b) What would be the yield to call annually if the call pricewere only $970?
c) What would be the yield to call annually if the call pricewere $1,020, but the bond could be called in two years instead offive years?
d) Sketch the price of the bond as a function of the interestrate.

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A 30-year maturity, 8% coupon bond paying coupons semiannuallyis callable in five years at a call price of $1,020. The bondcurrently sells for $1,059.34.a) What are the yield to maturity and the yield to call of thebond?b) What would be the yield to call annually if the call pricewere only $970?c) What would be the yield to call annually if the call pricewere $1,020, but the bond could be called in two years instead offive years?d) Sketch the price of the bond as a function of the interestrate.