Today is November 1, 2020. Charlotte Industries has bonds that are set to mature on November 1, 2040. These bonds pay interest semi-annually and are currently priced at $925. The coupon on the bonds is 3% and the bonds have a face value of $1000. Please show work.

1. What is the yield to maturity for an investor who purchases the bonds today?

2. What is the capital gains yield for an investor who purchases the bonds today?

3. Explain why in 1 sentence whether or not Charlotte Industries would call these bonds today if they could.