Question: Fin 445 ABC Inc. has two callable bonds outstanding on the market, both with 12 years to maturity, call protection for the next 5 years,

Fin 445 ABC Inc. has two callable bonds outstanding on the market, both with 12 years to maturity, call protection for the next 5 years, and a call premium of $100. Bond A has a 9% coupon and is priced at 117% of par. Bond B has a 5% coupon and is priced at 74.60% of par. What is the market yield for these two bonds? 1

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