What is the bonds approximate yield-to-maturity

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Assume that you purchase an 8 percent semi-annual, 20-year, $1,000 par bond, priced at $1,012.50, when it has 12 years remaining until maturity.

a. What is the bond’s approximate yield-to-maturity (YTM)?

b. What is the bond’s actual yield-to-maturity (YTM)?

c. If the bond is callable in 3 years, what will its current yield-to-call (YTC) be?

Reference no: EM13868318

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