2. It is now January 1, 2016, and you are considering the purchase of an outstanding bond that was issued on January 1, 2014. It has a 9% annual coupon and had a 20-year original maturity. (It matures on December 31, 2033.) There is 5 years of call protection (until December 31, 2018), after which time it can be called at 109-that is, at 109% of par, or $1,090. Interest rates have declined since it was issued, and it is now selling at 114.12% of par, or $1,141.2.

What is the yield to maturity? Round your answer to two decimal places. %

What is the yield to call? Round your answer to two decimal places.

3. Last year Janet purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 8.48%. If Janet sold the bond today for $1,047.15, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.