Problem:
Thatcher Corporation's bonds will mature in 20 years. The bonds have a face value of $1,000 and an 12% coupon rate, paid semiannually. The price of the bonds is $850. The bonds are callable in 5 years at a call price of $1,050. Round your answers to two decimal places.
Required:
Question 1: What is their yield to maturity?
Question 2: What is their yield to call?
Note: Please show how you came up with the solution.