Probiotec Ltd has 7-year bonds outstanding. The bonds pay a coupon of 8.375 per cent semiannually and are currently worth $1063.49. The bonds can be called in 3 years at a price of $1075. The bond has a face value of $1000.

a What is the yield to maturity on the bond?

b What is the effective annual yield?

c What is the realised yield on the bonds if they are called?

d If you plan to invest in this bond today, what is the expected yield on the invest