1. A corporate bond has a 15-year maturity and pays interest annually. The bond is priced at par and its coupon rate is 5%. The bond is callable in 5 years at 120% of par. Whats the bonds yield to call?

2.

Suppose you buy a 30-year 7% coupon rate (annual payment) for $910. You plan to hold the bond for 25 years. Your forecast is that the bonds yield to maturity will be 5% when it is sold and that the reinvestment rate on the coupons will be 8%. Whats your annualized compound return?