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Ten years ago, a firm issued $1,000 par value, 30-year bonds with an 6.5% coupon rate and a 7% call premium. These bonds currently trade

Ten years ago, a firm issued $1,000 par value, 30-year bonds with an 6.5% coupon rate and a 7% call premium. These bonds currently trade for $1,325 and are callable beginning 20 years from date of issuance. Assume semi-annual compounding.

a. Calculate the yield-to-maturity of these bonds today?

b. Calculate the yield-to-call on these bonds today?

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