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1 . Consider the following semiannual bond: Coupon rate = 6 . 5 % Maturity = 3 0 years Par value = $ 1 ,

1. Consider the following semiannual bond:
Coupon rate =6.5%
Maturity =30 years
Par value = $1,000
Market price = $1,050
Can be called in 10 years at $1,032.5
Can be called in 15 years at par
Only put date in 20 years and putable at par value
(1) What is the yield to maturity for this bond?
(2) What is the yield to first call?
(3) What is the yield to second call?
(4) What is the yield to worst for this bond?Consider the following semiannual bond:
Coupon rate =6.5%
Maturity =30 years
Par value =$1,000
Market price =$1,050
Can be called in 10 years at $1,032.5
Can be called in 15 years at par
Only put date in 20 years and putable at par value
(1) What is the yield to maturity for this bond?
(2) What is the yield to first call?
(3) What is the yield to second call?
(4) What is the yield to worst for this bond?
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