7) Southern Bell has issued S 90 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. 8) The U.S. Treasury issued a 7-year maturity, $1000 par value bond exactly 3 years ago. The bond pays a nominal coupon rate of 12%. The coupon payments are paid semi-annually. Sudha Krishnaswami Lecture Notes Page 1 of 3