What is the yield to maturity and yield to call

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Yield to maturity and yield to call

Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 12% annual coupon payment, and their current price is $1,180. The bonds may be called in 5 years at 109% of face value (Call price = $1,090).

A) What is the yield to maturity? Round your answer to two decimal places.

B) What is the yield to call if they are called in 5 years? Round your answer to two decimal places.

Reference no: EM13890332

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