Relationship between bond prices and interest rates | finance & capital markets | khan academy - duration: 13:16. khan academy 502,355 views. Investor's ytm and ytc. laser industries has just issued callable twelve-year, 6% coupon bonds with semi-annual coupon payments. the bonds can be called at 103 in four years or anytime thereafter on a coupon payment date.. Yield to call calculator is an online tool for investment calculation, programmed to estimate the expected investment return on callable bond. this calculator generates the output value of ytc in percentage according to the input values of the type of investment, bond face value, bond price, coupon rate, years to maturity, call price and years.
Best answer: hi, this is a simple question. the bond is selling at a premium and if held to maturity would yield approximately 8.95%. the coupon rate is 12%. if called early at $1,050 in five years it would yield approx. 10.70%.. , where, p = the bond price, c = the coupon payment, i = the yield to maturity rate, m = the face value and n = the total number of coupon payments. if you plug the 11.25 percent ytm into the formula to solve for p, the price, you get a price of $927.15. a lower yield to maturity will result in a higher bond price.. Yield to maturity (ytm) is the total return anticipated on a bond if the bond is held until it matures. yield to maturity is considered a long-term bond yield but it is expressed as an annual rate..
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