2. A corporate bond is sold in primary market with a 20 year maturity, an 8.00 percent coupon rate paid annually, and is callable at year 15 with a $1.25 call premium per $100 of par value. Joe buys the corporate bond with 12 years remaining to maturity at a price of $98.00 per $100 of par value.

1. When Joe buys the bond, what is the bonds current yield? Explain your answer.
2. When Joe buys the bond, what is the bonds yield to maturity? Explain your answer.
3. When Joe buys the bond, what is the bonds yield to call? Explain your answer.