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View Full Version : What is the yield to call formula?


zacharie101
Nov 27, 2012, 09:48 PM
I am not looking for the answer I just need the formula/steps to solve it since I have to calculate it manually and I only have a scientific calculator plus I don't have a financial calculator and I can't use excel on the exam.

I already know that price is 1,124.72
P=(40/1+.035)+(1000/(1+.035)^2)

A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond sells at a yield to maturity of 7%, or 3.5% per half-year.

a. What is the yield to call?