Consider the following semiannual bond:

Coupon rate = 8.5%

Maturity = 20 years

Par value = $1,000

Market price = $1,175 (PV)

Can be called in 8 years at $1,042.5

Can be called in 13 years at par

1. What is the yield to maturity for this bond? (1.5 point)
2. What is the yield to first call? (1.5 point)

(3) What is the yield to second call? (1.5 point)

(4) What is the yield to worst for this bond? (2.5 points)