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Yield to Maturity and Yield to Call Arnot International's bonds have a current market price of $1,200. The bonds have a 12% annual coupon payment,
Yield to Maturity and Yield to Call Arnot International's bonds have a current market price of $1,200. The bonds have a 12% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (call price =$1,090 ). a. What is the yield to maturity? Round your answer to two decimal places. % b. What is the yield to call if they are called in 5 years? Round your answer to two decimal places. %
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