1. Stillwater Hospitality Corporation bonds with a coupon rate of 5.125%, maturing in 2036 can be purchased now (March 1, 2021) for $925.75. The face value of each bond is $1000.00. The bonds are callable in three years (March 1, 2024 or later) at a call price of $1040. Assume annual compounding. Assume that coupon payments are made annually on March 1 of each year with the next payment to be received on March 1, 2022. Also, assume the bond matures on March 1, 2036.

(a) What is the yield to maturity (YTM) of this bond as of March 1, 2021 (today)? You must show how you arrived at your answer to get credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.

(b) What is the yield to call (YTC) for this bond as of March 1, 2021? You must show how you arrived at your answer to get credit. For example, you can describe the steps you followed to arrive at your answer or values you entered in the calculator (values you entered for PV, N, I/Y, etc). Either underline or highlight your final answer.

(c) If you were to buy this bond today (March 1, 2021) at the current price of $925.75.75, which yield are you more likely to earn--the YTM or the YTC ? Explain