INTERMEDIATE In $2006,$ BCC issued $8\%$ percent debentures that will mature on December $1,2046.$

a$.$ If an investor purchased one of these bonds $($ $$1,000$ denomination$)$ on December $1,2016,$ for $$1,050,$ determine the yield to$-$maturity. Explain why investors would be willing to pay $$1,050$ on December $1,2016,$ for one of these bonds when they are going to receive only $$1,000$ when the bond matures in $2046.$

b$.$ The BCC $8\%$ percent debentures are callable by the company on December $1,2021,$ at $$1,044\mathrm{.}50.$ Determine the yield to call as of December $1,2016,$ assuming that BCC calls the bonds on that date.

$10.$

BASIC Determine the value of a share of DuPont Series A $$3\mathrm{.}50$ cumulative preferred stock to an investor who requires the following rates of return:

a$.9$ percent