Problem: Regal Health Plans issued a 12 percent annual coupon bond a few years ago. The bond now has 10 years remaining to maturity and sells for $1,100. The bond has a call provision that allows Regal to call the bond in four years at a call price of $1,060.
Required:
Question 1: What is the bond's yield to maturity?
Question 2: What is the bond's yield to call?