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    Finance: Provide TI BA II steps for solving YTC, and realized rate for a bond sale

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    I need the TI BA II plus steps to solving the following practice problem and a brief explanation:

    A company sold a 20-year bond having a 12% annual coupon interest rate and an 8% call premium 7 years ago. The bond originally sold at a par value of $1,000 and are now being called.

    Calculate the realized rate, YTC, for investors who purchased these bonds when they were issued and who surrender them today in exchange for the call price. Do not interpolate.

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    Solution Preview

    The realized rate is Yield to Call:

    PMT=120, N=7, PV= -1000 ...

    Solution Summary

    The solution provides the steps for a financial calculator as well as the solution with explanation.