CHAPTER 18 PROBLEM 1

FINANCE  Investment Analysis and Portfolio Management CHAPTER 18 PROBLEM  1
 Four years ago  ，  your firm issued $1,000 par, 25-year bonds, with a 7 percent coupon rate   and a      10 percent call premium.   
      a. lf these bonds are now called, what is the approximate yield to call for the investors who   originally purchased them?  
       b.   If   these   bonds   are   now   called,   what   is   the   actual   yield   to   call   for   the   investors   who   originally purchased them at par? 
        c If the current interest rate is 5 percent and the bonds were not callable, at what price   would each bond sell?

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