You are performing an analysis on bond yield. You have the following data for a bond issued. The bond has 7% coupon and 20-year maturity. The bond sells for $1,150 and is callable in 10 years at a call price of $1,200. The bond makes semiannual coupon payments.

a. What is the annual Yield to Call? (sample answer: 12.45%) b. What is the annual Yield to Maturity? (sample answer: 12.45%)