Yield to Maturity and Yield to Call
Arnot International's bonds have a current market price of $1,200. The bonds have an 10% 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).
What is the yield to maturity? Round your answer to two decimal places.
What is the yield to call, if they are called in 5 years? Round your answer to two decimal places.