It is now january 1, 2019, and you are considering the purchase of an outstanding bond that was issued on january 1, 2017. it has a 9.5% annual coupon and had a 20-year original maturity. (it matures on december 31, 2036.) there is 5 years of call protection (until december 31, 2021), after which time it can be called at 108—that is, at 108% of par, or $1,080. interest rates have declined since it was issued, and it is now selling at 120.08% of par, or $1,200.80. a. what is the yield to maturity? do not round intermediate calculations. round your answer to two decimal places. % what is the yield to call? do not round intermediate calculations. round your answer to two decimal places. b. if you bought this bond, which return would you actually earn?

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500