Now assume the date is 10/25/2007.

Now assume the date is 10/25/2007. Assume further that our 12%, 10-year bond was issued on 7/1/2007, is callable on 7/1/2011 for $1,060, will mature on 7/1/2017, pays interest semiannually (January 1 and July 1), and sells for $1,100. Use your spreadsheet to find (a) the bond’s yield to maturity and (b) its yield to call.