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1 . Ozarks Managed Care Inc. issued some callable bonds 1 9 years ago with 3 0 - year life at their par value of

1. Ozarks Managed Care Inc. issued some callable bonds 19 years ago with 30-year life at their par value of $1,000. These bonds pay 9% coupon rate with annual payment. The firm just announced that these bonds are being called with $100 call premium. A non-callable bond with the same features (time till maturity; coupon rate, and par value) and same risks are selling at $1195 a piece on the market today. Whats the yield-to-maturity on the non-callable bonds? Please round your answer to 2 decimal places and skip the % sign, e.g. put 2.35 instead of 2.35%.

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