An issue of 9.60% senior debentures matures on December 15, 2029 and currently trade at 104.65 Interest is paid semi-annually and December 15 is a coupon anniversary date. [Assume today is December 15, 2020 so term to maturity is 9 years.] The debentures are callable on or at any time thereafter on the dates shown on the schedule below for the prices shown on the schedule. First call is 4 years away. What is the Yield to Maturity of the bonds?

December 15, 2020-2023 2024 2025 2026 2027 2028

Call Price No Call 104% 103% 102% 101% 100.5%

34. The Convexity of the bonds if held to first call is:

1. 7.2
2. 12.6
3. 13.7
4. 15.0
5. 16.3