12) Today is 7/1/2018. A callable bond with a maturity of 12/31/2024 and a 6% coupon sells for 93.40. The call date is 12/31/2018 and the call price is 102. Which of the statement is true? A. The bond is likely to be called and the YTC is 8.41% B. The bond is likely to be called and the YTC is 24.84% C. The bond is not likely to be called and the YTM is 7.29% D. The bond is not likely to be called and the YTM is 8.41% ans: C, Please explain

18) You purchased a 5-year, 6% coupon bond with a YTM of 4%. If you sold the bond after receiving the second interest payment and the bond's YTM had changed to 3%, your annual total rate of return on holding the bond for that year would have been A. 5.00% B. 5.51% C. 6.68% D. 7.57% ans: D, explain