Fincorp issues two bonds with $18-$year maturities. Both bonds are callable at $$1,075.$ The first bond is issued at a deep discount with a coupon rate of $6\%$ and a price of $$610$ to yield $11\mathrm{.}3\%.$ The second bond is issued at par value with a coupon rate of $12\mathrm{.}50\%$

Required:

a$.$ What is the yield to maturity of the par bond? $($Round your answer to $2$ decimal places.$)$

b$.$ If you expect rates to fall substantially in the next two years, which bond would you prefer to hold?