?A(n) 9.0?%, ?25-year bond has a par value of? $1,000 and a call price of ?$1,150. ?(The bond's first call date is in 5? years.) Coupon payments are made semiannually? (so use semiannual compounding where? appropriate).

a. Find the current? yield, YTM, and YTC on this? issue, given that it is currently being priced in the market at $1,275.Which of these 3 yields is the? highest? Which is the? lowest? Which yield would you use to value this? bond? Explain.

b. Repeat the 3 calculations? above, given that the bond is being priced at $925. Now which yield is the? highest? Which is the? lowest? Which yield would you use to value this? bond? Explain.

a. If the bond is priced at ?$1,275?, the current yield is ---------%. ?(Round to two decimal? places.) The annual? yield-to-maturity with semiannual compounding is --------%. ?(Round to two decimal? places.)

The annual? yield-to-call with semiannual compounding is --------------%. ?(Round to two decimal? places.)

Which of these 3 yields is the? highest? -------------------Which is the? lowest??--------------------------(Select from the? drop-down menus.)

Which yield would you use to value this? bond?------------------------?(Select the best answer? below.)

A.The? yield-to-call because convention is to use the lower more conservative measure of yield.

B. It? doesn't matter which yield you use.

C. The? yield-to-maturity is always used.

D. The? yield-to-maturity because the bonds may not be called.

b. If the bond is priced at ?$925?, the current yield is----------------- %. ?(Round to two decimal? places.) The annual? yield-to-maturity with semiannual compounding is----------------- %. ?(Round to two decimal? places.)

The annual? yield-to-call with semiannual compounding is---------------------- %. ?(Round to two decimal? places.)

Which of these 3 yields is the? highest? --------------Which is the? lowest??---------------(Select from the? drop-down menus.)

Which yield would you use to value this? bond??------------------(Select the best answer? below.)

A. The? yield-to-maturity is always used.

B. The? yield-to-maturity because convention is to use the lower of? yield-to-maturity or? yield-to-call for bonds selling at a dis

C. The? yield-to-maturity because the bonds may not be called.

D. It? doesn't matter which yield you use