Three years ago, Jack’s Automotive issued a 20-year callable bond with a $1,000 maturity value and an 8.5 percent coupon rate of interest. Interest is paid semiannually. The bond is currently selling for $1,046.
What is the bond’s yield to maturity?
If the bond can be called in four years for a redemption price of $1,089, what is the bond’s yield to call?