You are currently considering buying an Ecolab corporate bond. The bond has the following characteristics: Par value of bond $ 1,000
Coupon rate 8%
Bond was issued five year ago
Bond will mature 30 year from original issuance
Payments are made semi-annually
Callable 10 years after issue
Call price $ 1,050
Current market interest rate 6%
What is this bond's yield - to - maturity? What is this bond's yield - to - call? Why would investors choose bonds over stocks? What variables impact the price (value) of a bond?