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-   -   What is the yield to call formula? (https://www.askmehelpdesk.com/showthread.php?t=719560)

  • Nov 27, 2012, 09:48 PM
    zacharie101
    What is the yield to call formula?
    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?

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