#2. TeleCom Co has an outstanding callable 5% coupon bond with a price of $106 per $100 par value and 9 years to maturity. The bond can be called at 104% of par in 2 years. a) What is the yield to maturity of TeleCom's bond? b) What is the yield to call of TeleCom's bonds? c) What is the yield to worst of Telecom's bond? Does this mean the bond is likely to be called? Credit Spread in Basis Points Time to Maturity Rating 1 3 5 10 20 20 55 80 100 130 40 85 100 135 150 A 60 85 135 165 200 70 105 160 200 250 120 195 250 350 400 180 275 350 450 520 300 500 650 900 1100