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Consider the following bond:
Consider the following bond:Coupon rate = 11%Maturity = 18 yearsPar value = $1,000First par call in 13 yearsOnly put date in five years and putable at par valueSuppose that the market price for this bond $1,169.(a) Show that the yield to maturity for this bond is 9.077%.(b) Show that the yield to first par call is 8.793%.(c) Show that the yield to put is 6.942%.(d) Suppose that the call schedule for this bond is as follows:Can be called in eight years at $1,055.Can be called in 13 years at $1,000.And suppose this bond can only be put in five years and assume that the yield to first par call is 8.535%. What is the yield to worst for this bond?I do not seem to be able to obtain the figures using the IRR method. I hope you can show it to me. Many thanks
