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A bond with 5 years to maturity is currently trading for $101 per 100 of par value. The bond offers a 6% coupon rate with
A bond with 5 years to maturity is currently trading for $101 per 100 of par value. The bond offers a 6% coupon rate with interest paid semi-annually. The bond is first callable in 3 years at 102 per 100 of par value, in 4 years at 101 per 100 of par value and in 5 years at par (100).
a) What is the bond's annual yield to maturity (YTM):
b) What is the bond's annual yield to first call?
c) What is the bond's annual yield to second-call?
d) What is the bond's yield-to-worst?
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