Fincorp issues two bonds with 20-year maturities. Both bonds are callable at $1,060. The first bond is issued at a deep discount with a coupon rate of 5% and a price of $500 to yield 11.6%. The second bond is issued at par value with a coupon rate of 12.50% Required: a. What is the yield to maturity of the par bond? (Round your answer to 2 decimal places.) Yield to maturity % b. If you expect rates to fall substantially in the next two years, which bond would you prefer to hold? Bond with a coupon rate 12.50% O Bond with a coupon rate 5%