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Arnot International has bonds outstanding that are currently trading in the market at a price of $ 1 , 3 0 0 . These bonds

Arnot International has bonds outstanding that are currently trading in the market at a price of $1,300. These bonds have several characteristics:
The bonds have a face value of $1,000.
They pay an annual coupon of 11%.
The bonds have 10 years left until they mature.
Additionally, there's a provision that allows the company to call back these bonds in 5 years at a price of 109% of the face value, which amounts to $1,090.
Now, we need to find the Yield to Maturity (YTM) and Yield to Call (YTC) for these bonds.
To calculate YTM, we need to determine the rate at which the present value of all future cash flows (coupon payments and the face value) equals the current market price of the bond, which is $1,300.
To calculate YTC, we need to determine the rate at which the present value of cash flows up to the call date equals the call price, which is $1,090.
Let's solve for both YTM and YTC.b. What is the yield to call if they are called in 5 years? Round your answer to two decimal places.
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