Arnot International's bonds have a present market price of $1,250. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be known in 5 years at 109% of face value (Call price = $1,090).
a. What is the yield to maturity?
b. What is the yield to call, if they are known in 5 years?