Four years ago Messy House Painting issued a 20-year bond with a $1000 maturity value and a 4 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $714.
A) What is the bond's yield to maturity?
B) If the bond can be called in three years for a redemption price of $1040, what is the bond's yield to call?
thank you...but what formula did you use to get these solutions?
I did it on excel..there are formulas in excel to calculate ytm...=yieldmat(....)
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