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21. A corporate bond matures in 14 years. The bond has an 8 percent semiannual coupon and a par value of $1,000. The bond is

21. A corporate bond matures in 14 years. The bond has an 8 percent semiannual coupon and a par value of $1,000. The bond is callable in five years at a call price of $1,050. The price of the bond today is $1,075. What are the bonds yield to maturity and yield to call?

A. YTM = 14.29%; YTC = 14.09%

B. YTM = 3.57%; YTC = 3.52%

C. YTM = 7.14%; YTC = 7.34%

D. YTM = 6.64%; YTC = 4.78%

E. YTM = 7.14%; YTC = 7.05%

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