eBook

A firm's bonds have a maturity of $12$ years with a $$1,000$ face value, have an $8\%$ semiannual coupon, are callable in $6$ years at $$1,067\mathrm{.}33,$ and currently sell at a price of $$1,125\mathrm{.}80.$ What are their nominal yield to maturity and their nominal yield to call? Do not round intermediate calculations. Round your answers to two decimal places.

$YTM$: $3\%$

$YTC$: $3\%$

What return should investors expect to earn on these bonds?