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2) Southern Bell has issued $1000 par, 4.375% coupon bonds that mature in 6 years. The coupons on these bonds are paid semi-annually. These bonds

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2) Southern Bell has issued $1000 par, 4.375% coupon bonds that mature in 6 years. The coupons on these bonds are paid semi-annually. These bonds are currently trading at a price of $853.75. The bonds are callable in 2 years at a call price of $1000. a) Compute the Yield-to-Maturity (YTM) on the bonds. b) Compute the Yield-to-Call (YTC) on the bonds

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