Another bond was issued on 6/1/2018 and has a 4% coupon rate, with interest paid semi-annually, and a maturity value of $1,000, and matures on 6/1/2043. However, it is callable after 6/1/2023 with a call premium of 7.5%. If the bond is currently priced to yield 3.75%, what is the bond's yield to call if you bought it on 3/1/2022?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Another bond was issued on 6/1/2018 and has a 4% coupon rate, with
interest paid semi-annually, and a maturity value of $1,000, and matures on 6/1/2043.
However, it is callable after 6/1/2023 with a call premium of 7.5%. If the bond is
currently priced to yield 3.75%, what is the bond's yield to call if you bought it on
3/1/2022? 

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