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Taussig Corp. ' s bonds currently sell for $ 9 5 0 . They have a 7 . 2 5 % annual coupon rate, a

Taussig Corp.'s bonds currently sell for $950. They have a 7.25% annual coupon rate, a $1,000 par value, and a 15-year maturity, but they can be called in 7 years at $1,075.50.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 on into the future. Under these conditions, calculate the YTM and YTC.

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