McCue Inc.'s bonds currently sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity and a $1,000 par value, but they can be called in 5 years at $1,050. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels into the future. What is the difference between this bond's YTM and its YTC? (Subtract the YTC from the YTM.) O a. 2.55% O b. 2.32% O c. 2.11% Od. 2.80% A bond is currently priced at $800 on a par value of $1,000. Its term to maturity is 10 years and its coupon rate is 10% (stated annually, paid semiannually). If you buy the bond, and hold it to maturity, what would be the yield to maturity? a. 12.50% b. 10% O c. 13.74% Od. 8% 1 Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The band has face value of $1,000 and makes semiannual interest payments. If you require an 11.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond? a. $891.00 O b. $913.27 O c. $959.51 O d. $936.10 Clear my choice Q