3. consider a bond with a market price of $1138 that pays interest semiannually with the following features

Maturity 6 years

Coupon rate 5.50%

Par $1000

Callable in 5 years at a call price of $1055

1. Calculate the current yield and the yield to maturity for the bond
2. What are the total coupon payments over the life of the bond, and how much must the interest on interest be?
3. Calculate the yield to call for the bond
4. What changes in the overall market environment can increase the reinvestment risk for investors in these callable bonds?