A(n) 10.0%, 25-year bond has a par value of$1,000 and a call price of $1,100. (The bond's first call date is in 5years.) Coupon payments are made semiannually(so use semiannual compounding whereappropriate).

a. Find the currentyield, YTM, and YTC on thisissue, given that it is currently being priced in the market at $1,225. Which of these 3 yields is thehighest? Which is thelowest? Which yield would you use to value thisbond? Explain.

b. Repeat the 3 calculationsabove, given that the bond is being priced at $875. Now which yield is thehighest? Which is thelowest? Which yield would you use to value thisbond? Explain.