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Yield to Maturity and Call with Semiannual Payments Thatcher Corporation's bonds will mature in 18 years. The bonds have a face value of $1,000 and
Yield to Maturity and Call with Semiannual Payments
Thatcher Corporation's bonds will mature in 18 years. The bonds have a face value of $1,000 and an 8.5% coupon rate, paid semiannually. The price of the bonds is $950. The bonds are callable in 5 years at a call price of $1,050. What is their yield to maturity? What is their yield to call? Do not round intermediate calculations. Round your answers to two decimal places.
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