What is the bond yield to maturity

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Three years ago, Jack's Automotive Jacks issued a 20-year callable bond with a $1,000 maturity value and a 8.5 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $1,046.

(a) What is the bond's yield to maturity?

(b) If the bond can be called in four years for a redemption price of $1,085, what is the bond's yield to call?

Reference no: EM13965789

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