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Yields Drive inc. bonds currently sell for $ 1 , 0 7 5 and have par value of $ 1 , 0 0 0 .

Yields

Drive inc. bonds currently sell for $

1, 075

and have par value of $

1, 000 .

They pay a $

120

annual coupon and have an

11 -

year maturity, but they can be called in

5

years at $

1, 020 .

.

What is their YTC

?

.

What is their YTM

?

.

Which return is the bondholder more likely to receive? Why?

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