It is now January $1,2014,$ and you are considering the purchase of an outstanding bond that was issued on January $1,2010.$ It has a $13\mathrm{.}00\%$ annual coupon and it matures on December $31,2029.$ There is a call protection until December $31,2016$ after which time it can be called at $104\%$ of par. Interest rates have declined since it was issued; and it is now selling at $105\%$ of par.

a$)$ What is the yield to maturity?

b$)$ What is the yield to call?

a$)12\mathrm{.}27\%$; b$)12\mathrm{.}10\%$

a$)12\mathrm{.}10\%$; b$)12\mathrm{.}27\%$

a$)12\mathrm{.}27\%$; b$)12\mathrm{.}60\%$

a$)13\mathrm{.}00\%$; b$)12\mathrm{.}10\%$

a$)13\mathrm{.}00\%$; b$)12\mathrm{.}60\%$