?A(n) 10.0 ?%, ?25-year bond has a par value of? $1,000 and acall price of ?$1 comma 050 . ?(The bond's first call date is in 5?years.) Coupon payments are made semiannually? (so use semiannualcompounding where? appropriate).

a. Find the current? yield, YTM, and YTC on this? issue, giventhat it is currently being priced in the market at $ 1 comma 175.Which of these 3 yields is the? highest? Which is the? lowest?Which yield would you use to value this? bond? Explain.

b. Repeat the 3 calculations? above, given that the bond isbeing priced at ?$825 . Now which yield is the? highest? Which isthe? lowest? Which yield would you use to value this? bond?Explain.

a. If the bond is priced at ?$1 comma 175 ?, the current yieldis nothing ?%. ?(Round to two decimal? places.) The annual?yield-to-maturity with semiannual compounding is nothing ?%.?(Round to two decimal? places.) The annual? yield-to-call withsemiannual compounding is nothing ?%. ?(Round to two decimal?places.) Which of these 3 yields is the? highest? Which is the?lowest????(Select from the? drop-down menus.) ? Yield-to-callCurrent yield Yield-to-maturity is the? highest, while ? currentyield yield-to-call yield-to-maturity is the lowest. Which yieldwould you use to value this? bond???

A. The? yield-to-maturity is always used.

B. The? yield-to-maturity because the bonds may not becalled.

C. The? yield-to-call because convention is to use the lowermore conservative measure of yield.

D. It? doesn't matter which yield you use. b. If the bond ispriced at ?$825 ?, the current yield is nothing ?%. ?(Round to twodecimal? places.)

The annual? yield-to-maturity with semiannual compounding isnothing ?%. ?(Round to two decimal? places.)

The annual? yield-to-call with semiannual compounding is nothing?%. ?(Round to two decimal? places.)

Which of these 3 yields is the? highest? Which is the? lowest. ?Current yield Yield-to-call Yield-to-maturity is the? highest,while ? yield-to-maturity current yield yield-to-call is thelowest. Which yield would you use to value this? bond??

A. The? yield-to-maturity because convention is to use the lowerof? yield-to-maturity or? yield-to-call for bonds selling at adiscount.

B. The? yield-to-maturity because the bonds may not becalled.

C. It? doesn't matter which yield you use.

b. If the bond is priced at ?$825?, the current yield is nothing?%. ?(Round to two decimal? places.)

The annual? yield-to-maturity with semiannual compounding isnothing ?%. ?(Round to two decimal? places.)

The annual? yield-to-call with semiannual compounding isnothing?%. ?(Round to two decimal? places.)

Which of these 3 yields is the? highest? Which is the?lowest???

Current yield

Yield-to-call

Yield-to-maturity

is the? highest, while yield-to-maturity current yieldyield-to-call is the lowest.

Which yield would you use to value this? bond????(Select thebest answer? below.)

A.The? yield-to-maturity because convention is to use the lowerof? yield-to-maturity or? yield-to-call for bonds selling at adiscount.

B.The? yield-to-maturity because the bonds may not becalled.

C.It? doesn't matter which yield you use.

D.The? yield-to-maturity is always used.