1. IBM has just issued a callable (at par) 8 year, 11% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $105 per $100 face value. What is the bond's yield to call? Express your answers in strictly numerical terms.
2. IBM has just issued a callable (at par) 8 year, 12% coupon bond with annual coupon payments. The bond can be called at par in one year or anytime thereafter on a coupon payment date. It has a price of $94 per $100 face value. What is the bond's yield to call? Express your answers in strictly numerical terms.