Masters Corp. issues two bonds with 20-year maturities. Both bonds are callable at $1,030. The first bond is issued at a deep discount with a coupon rate of 4% to yield 10.1%. The second bond is issued at par value with a coupon rate of 11.50% a. What is the yield to maturity of the par bond? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Yield to maturity 8.75 % b. If you expect rates to fall substantially in the next two years, which bond would you prefer to hold? Bond with a coupon rate 11.50% Bond with a coupon rate 4%