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two part question: PLEASE ANSWER BOTH PARTS. THANKS A: Dyl Inc's bonds currently sell for $1,180...

two part question: PLEASE ANSWER BOTH PARTS. THANKS

A: Dyl Inc's bonds currently sell for $1,180 and have a par value of $1000. they pay a $65 annual coupon and have a 15yr maturity, but they can be called in 5 years at $1,100. what is their yield to maturity (ytm)?

B: calculate the yield to maturity (ytm) for a bond that has a $1000 par value, 15yrs to maturity, a 4% annual coupon, and currently sells for $990. assume the bond is callable 2yrs from today at a call price of $1,040

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Answer #1

A)

Hence, Yield to maturity is 4.79%

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