Q1. Keenan Industries has a bind outstanding with 20 years to maturity, an 8.75% coupon paid...

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Q1. Keenan Industries has a bind outstanding with 20years to maturity, an 8.75% coupon paid semiannually, and a 1000$par valuem The bind has 6.50% nominal yeild to maturity, but it canbe called in 5 years at a price of 1088$. what is bond's nominalyield to call?
Q2. Gary Wells in perpetual preferred stock has anannual dividend of 7.25$ per share and is selling in the market for95$ per share. if your required return on this preferred stock is8.0%, is this preferred stock undervalued, overvalued, or fairlyvalued, why?

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Q1. Keenan Industries has a bind outstanding with 20years to maturity, an 8.75% coupon paid semiannually, and a 1000$par valuem The bind has 6.50% nominal yeild to maturity, but it canbe called in 5 years at a price of 1088$. what is bond's nominalyield to call?Q2. Gary Wells in perpetual preferred stock has anannual dividend of 7.25$ per share and is selling in the market for95$ per share. if your required return on this preferred stock is8.0%, is this preferred stock undervalued, overvalued, or fairlyvalued, why?