The current price of the bond can be derived from the yield to maturity. Using your calculator, set:
 n = 40 (semiannual periods); PMT = $45 per period; FV = $1,000; I = 4% per semiannual period. Calculate present value as $1,098.96. Now we can calculate yield to call. The time to call is fi ve years, or 10 semiannual periods. The price at which the bond will be called is $1,050. To fi nd yield to call, we set: n = 10 (semiannual periods); PMT = $45 per period; FV = $1,050; PV = $1,098.96. Calculate the semiannual yield to call as 3.72%.
