1. If the bonds of Palmer Products referenced in the previous question may be called after 6 years at a 10% call premium (i.e. $1,100), what is the yield to call for the bonds?

	a.	10.09%
	b.	7.50%
	c.	4.53%
	d.	3.90%
	e.	2.54%

2. The term Yield to Maturity can be defined as:

	a.	The rate of return earned on a bond if it is called before its maturity date.
	b.	The annual interest payment on a bond divided by the bonds current price
	c.	The stated annual interest rate on a bond
	d.	The specified number of dollars of interest paid each period
	e.	The rate of return earned on a bond if it is held to maturity