Calculation and Interpretation of traditional yield measures for fixed-rate bonds. Their assumptions and limitations.

1. Consider a 20-year, $1,000 par value, 6% semiannual-pay bond that is currently trading at $802.07. Calculate the current yield, the YTM, and the BEY

2. A bond with 5 years remaining until maturity is currently trading for 101 per 100 of par value. The bond offers a 6% coupon rate with interest paid semiannually. The bond is first callable in 3 years, and is callable after the date on coupon dates according to the following schedule:

End of year	Call Price

a. What is the bonds yield to maturity?

b. What is the bonds yield-to-first call?

c. What is the bonds yield-to-second call?

d. What is the bonds yield-to-worst?