H&M has just issued a callable (at par) ten-year, 8% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $101 and a face value of $100. What is the bonds yield to maturity and yield to call?

a) The bonds yield to call is...... %. (round to 3 decimals)

(b) The bonds yield to maturity is..... %. (round to 3 decimals)

(c) Now suppose that the coupon payments are made quarterly, where the coupon rate is 8% APR with quarterly compounding.

The bond's yield to maturity, stated as EAR, is........ %. (round to 3 decimals)