Assume that a 20-year, 5% annual coupon bond with semiannual payments has a par value of $1,000. Assume the bond can be called at the ten-year mark (i.e., in 10 years) at a call price of $1,050. The bond currently sells for $950. Employ the excel file to answer the following questions:

Part 1: Bond Yield

1. Fill in and calculate the basic bond data and using the Excel Rate function, calculate the periodic Yield to Maturity. Using the Excel Rate function, calculate the annualized Yield to Maturity (7 Points)