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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

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 8.20% 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?

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