Question A, B, and C

It is now January 1,2021 , and you are considering the purchase of an outstanding bond that was issued on January 1,2019. It has a 9% annual coupon and had a 20 -year original maturity. (It matures on December 31,2038 .) There is 5 years of call protection (until December 31 , 2023), after which time it can be called at 108 -that is, at 108% of par, or $1,080. Interest rates have declined since it was issued, and it is now selling at 114.12% of par, $141.20. a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. % What is the yield to call? Do not round intermediate calculations. Round your answer to two decimal places. % Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 11% annual coupon payment, and their current price is $1,185. The bonds may be called in 5 years at 109% of face value (Call price =$1,090 ). a. What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. 3% b. What is the yield to call if they are called in 5 years? Do not round intermediate calculations. Round your answer to two decimal places. %