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17. Tyson, Inc. issued a 20-year bond which is callable in 13 years. It has a coupon rate OT 8.25% payable semiannually and h
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Answer #1

To find the YTC (yield to call), we need to put the following values in the financial calculator:

INPUT 13*2=26 -91.8%*1000=-918 (8.25%/2)*1000=41.75 1000+120=1120
TVM N I/Y PV PMT FV
OUTPUT 4.93

So, periodic rate = 4.93%

YTC = Periodic Rate * No. of periods in a year

= 4.93% * 2 = 9.86%

Hence, option "A" is correct.

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