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Three years ago, Jack's Automotive Jacks issued a 20-year callable bond with a $1,000 maturity value and an 8.5 percent coupon rate of interest. Interest

Three years ago, Jack's Automotive Jacks issued a 20-year callable bond with a $1,000 maturity value and an 8.5 percent coupon rate of interest. Interest is paidsemiannually. The bond is currently selling for $1,046. (a) What is the bond's yield to maturity? (b) If the bond can be called in four years for a redemption price of $1,089, what is the bond's yield to call?

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