Parsons' $7$ year bonds pay an annual coupon. The coupon is $4\mathrm{.}0\%$ and the par value is $$1,000.$ The current market price

of these bonds are $$1095\mathrm{.}25.$ The bonds are callable, and the call premium $($i$.$e$.$ the extra amount above the par value

that the issuer must pay the bondholder if the bond is called is equal to one coupon payment $--$ $$40\mathrm{.}00)$

The earliest the bond can be called is $3$ years from today.

Coupon Rate $4\mathrm{.}00\%$

A$)$ What is the yield to maturity of the bond? $2\mathrm{.}50\%$ Par Value $$1,000\mathrm{.}00$

Price $$1,095\mathrm{.}25$

B$)$ What is the yield to call of the bond? Call Premium $4\mathrm{.}00\%$ or $$40\mathrm{.}00$

Years to Maturity $7$

C$)$ Which yield, YTM or YTC$,$ should the bonholder expect to receive as their return? Years to First Call $3$

YTC