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Ikechukwu Inc.'s bonds currently sell for $ 1175. They pay $90 annual coupon, have a 25...

Ikechukwu Inc.'s bonds currently sell for $ 1175. They pay $90 annual coupon, have a 25 year to maturity, and a $1000 par value, but they can be called in 5 years at $1050. Assume that no costs other than the call to premium would be incurred to call and refund the bonds, and also assume that the yield to curve is horizatonal, with rates expected to remain at current levels on into the future. What is the difference between this bonds YTM and its YTC?

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B C D 7.44% =RATE(25,90,-1175,1000) 15 Yield to maturity 16 Less: 17 Yield to call 18 5.76% =RATE(5,90,-1175,1050) 19 Differe

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