Question: Fincorp issues two bonds with 18-year maturities. Both bonds are callable at $1,060. The first bond is issued at a deep discount with a coupon

Fincorp issues two bonds with 18-year maturities. Both bonds are callable at $1,060. The first bond is issued at a deep discount with a coupon rate of 8% and a price of $580 to yield 14.9%. The second bond is issued at par value with a coupon rate of 16.50% Required:

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

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