What is yield to call

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1a) J Company bonds have the following characteristics: Face value $1,000, Coupon rate 10% paid annually, issued five years ago with an original maturity of 20 years. If the bonds have a market price of $1,519, what is their yield to maturity?

b) W Company bonds will mature in 10 years; the bonds have a face value of $1,000 and a 6%coupon rate, paid semi-annually. The market price of the bonds is $1,100. The bonds are callable in 5 years at a call price of $1,050. What is their yield to call?

Reference no: EM132538293

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