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It is now January 1, 2022, and you are considering the purchase of an outstanding bond that was issued on January 1, 2019. It has
It is now January 1, 2022, and you are considering the purchase of an outstanding bond that was issued on January 1, 2019. It has an 10.5% annual coupon and a 20-year original maturity. There is a 10 years of call protection, after which time it can be called at 107.5% of par. Interest rates have declined since it was issued, and it is now selling at 113.55% of par. What is the yield to maturity? What is the yield to call? Round your final answers to 2 decimal places.
8.61%; 7.90%
9.60%; 7.92%
8.21%; 7.14%
10.07%; 7.80%
8.92%; 8.66%
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