Hennes & Mauritz have just issued a ten-year callable, 8% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime therafter on a coupon payment date. It has a price of $101 and a face value of $100.

a. What is the bond's yield to call? % (answer in percentage form with two decimals; for example 4.54 and not 0.0454).

b. What is the bond's yield to maturity? % (answer in percentage form with two decimals; for example 4.54 and not 0.0454). Hint: use a financial calculator, Excel's RATE formula or trial-and-error by hand (or with excel) within the interval 6% - 8%.

c. What is the Yield to Call if instead we suppose that the coupon payments are made semiannually and the coupon rate is 8%. The Yield to Call stated in yearly format is then % (answer in percentage form with two decimals; for example 4.54 and not 0.0454). Hint: use a financial calculator, Excel's RATE formula or trial-and-error by hand (or with excel) within the interval 6% - 8% of the yearly rate.