Assume that Kendal Corp. has an outstanding bond issue with a par value of $1,000 and a current market price of $1,037.70 per bond. The bond has seven years remaining and a coupon rate of 6 percent.(Use Excel to answer this question. Enter your answer as a percent rounded to 2 decimal places.)

a.Find the current yield to maturity for the Kendal Corp. bond.(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Yield to Maturity:

b.If the bond trades at a yield spread of 2.10 percent above comparable U.S. Treasury notes, what must the current yield on Treasury notes be?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Treasury Yield: ____%

c.If the Kendal bond has a make-whole call premium of 130 basis points above the U.S. Treasury rate, what is the make-whole call premium?(Do not round intermediate calculations. Enter the make-whole yield answer as a percent rounded to 2 decimal places. Enter the make-whole price answer in dollars rounded to 2 decimal places.)

Make-whole Yield: ______%

Make-whole Price: