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A bond with 5 years until maturity is currently trading for 103 per 100 of par value. The bond offers a 4% coupon rate with

A bond with 5 years until maturity is currently trading for 103 per 100 of par value. The bond offers a 4% coupon rate with interest paid semiannually. The bond is first callable in 4 years, and is callable after that date on coupon dates according to the following schedule:

End of Year

Call Price

4

104

5

102

6

101

  1. What is the bonds current yield-to-second-call?
  2. What is the bonds yield-to-worst?

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