Dominique LeBlanc is the owner of a new ten-year $50,000 9% par-value bond with a Bermuda option and annual coupons. Allowable call dates are at the ends of years 6 through 10, and the call premium at the end of year n is

$300(10 n).

Dominique purchased the bond for $51,246.

(a)

Find the lowest yield that Dominique may receive during the period she holds the bond as well as the highest. (Round your answers to two decimal places.)

lowest yield rate: %

highest yield rate: %

(b)

Upon receipt, Dominique deposits each coupon and the redemption amount in an account earning 4%. Find the lowest yield that Dominique may receive during the ten-year period and also the highest. (Round your answers to two decimal places.)

lowest yield rate: %

highest yield rate: %