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Question 4 (10 points) A 20-year maturity, 10% coupon bond paying coupons semiannually is callable in 5 years at a call price of$1,100. The bond currently sells at a yield to maturity of 8% (4% per half-year). aWhat is the yield to call? b. What is the yield to call if the call price is only $1,050 .What is the yield to call if the call price is $1,100, but the bond can be called in 2 years instead of 5 years?
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Amst :-A 20 year maku rihl , \07- Coupon bond pay. coupons Semiannu a cau pric* 4oo.Th o currel, s els 1000 per bond or ieldield call 50 + 10S0-1000 2_ call price is % \1 oo bul >ond can be n A- 2 2 50O 10 O O 4- 2 O.O714 jad to call 7.1

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